The elimination of a business deduction for employee food costs will take effect after December 31, affecting companies that provide office snacks, coffee, or meals. This change, part of the Trump administration's tax law, seeks to raise $32 billion from employers. While restaurants retain their meal deductions for staff, many businesses outside this sector, such as factories and hospitals, will face increased financial burdens without this deduction. The impact on companies like Goldman Sachs and Meta, known for their employee perks, remains uncertain as they evaluate their options.
The president's signature tax law allows a long-standing business deduction for the cost of food provided to employees to expire, imperiling a workplace perk popularized during Silicon Valley's dot-com boom.
US companies that continue to provide office snacks, coffee or on-site lunches will see them taxed after Dec. 31, when the deduction will be eliminated.
Eliminating the deduction is projected to raise $32 billion in additional taxes on employers through taxing food provided to employees.
Restaurants will also be able to deduct the cost of employee meals, a long-standing tradition for kitchen and wait staff, but not other employers.
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