Is the subsidized amount of meals provided for a fee taxable to an employee?

Author: Alice Gilman

No. The cost of subsidized meals qualifies as a tax-free de minimis fringe benefit if:

  • The meals are provided at an employer-owned or -operated eating facility;
  • The facility's annual revenue equals or exceeds its direct costs;
  • The facility is on or near the employer's business premises; and
  • Meals are provided to employees during, or immediately before or after, employees' workdays.