Accounting, Payroll & Pension Issues/Employee Perks

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Question
We receive an employee card that has money loaded on it every month for us to eat at the restaurant if we choose to.  If you don't use the money on your card that month you lose it.  It does not get rolled over.  This should be taxable to the employee right?  That is what I believe that I am reading according to the IRS.  Am I on the right track?

Thanks.

Answer
It is taxable to the employee unless it is for the convenience of the employer so the employees are close to work and can take less time on lunch and be back on time.

Shirley

I might add this is not taxable if the employee is traveling for work from one site to another it is allowed as a meal per diem.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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