Maybe. In BOYD GAMING CORP., the Ninth Circuit Court ruled that on-site meals an employer provides to employees that meet the IRC (Internal Revenue Code) Section 119 “for the convenience of the employer” test are 100% deductible. This business expense is not taxable to the employee, either, making it a good deal for both of you.
Some Meal & Entertainment expenses are not subject to the 50% limit, including expenses that are:
- Primarily for the benefit of employees who are not highly compensated.
- Directly related to business meetings.
- Included in an employee’s moving expenses that are paid or reimbursed by the employer.
- For meals that are excludable from an employee’s gross income as a de minimis fringe benefit.
