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Employee Meals and Tax Implications

Employee Meals and Tax Implications

Meals provided to employees are generally considered taxable fringe benefits under Internal Revenue Service regulations unless specifically excluded by law. Specifically, hospitality expenses must be non-compensatory, infrequent, and of minimal value to avoid employee tax implications. The Hospitality Policy is designed to disallow taxable employee meals in order to avoid creating employee tax burdens and ensure University tax compliance. (Reference IRS Publication 15-B and IRS Publication 463.)

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