logo
Go Back To The Office, But Bring Your Own Snacks. Blame Congress.

Go Back To The Office, But Bring Your Own Snacks. Blame Congress.

Forbes20-07-2025
I ncreasingly, companies have been asking (or demanding) that employees return to the office, claiming that it fosters a stronger company culture and enhances productivity. To woo employees back, or to make sure they're not angry/hangry when ordered back, companies have been expanding perks such as on-site gyms, childcare facilities, and, of course, free food and beverages.
Beginning January 1, the food part will be more expensive for employers, meaning more of them could revert to B.Y.O.S (Bring Your Own Snacks). Congressional Republicans, who extended so many other tax breaks (and added some new ones) in the One Big Beautiful Bill Act (OBBBA) President Donald Trump signed on July 4th, decided they would allow a current deduction for employers who provide meals and snacks to expire—except that is, for certain employees, such as those working in restaurants and in Alaskan fishing vessels and fish processing facilities. (No, we're not making it up. The fishy part was one of the concessions Alaska Senator Lisa Murkowski extracted from her Republican colleagues for her crucial support.)
Before Trump's first term tax cuts—the 2017 Tax Cuts and Jobs Act (TCJA)—employers who provided meals for their employees—and the employees who benefited from them—were entitled to tax breaks under one of two sections of the tax code.
Under section 119 of the tax code, employees are not taxed on on-site meals provided by employers for the employer's convenience. For tax purposes, whether meals are for the convenience of the employer depends on all the facts and circumstances, but typically means that there's a substantial business reason other than to provide the employee with additional pay (the exclusion doesn't apply to cash allowances instead of meals). So feeding employees who would otherwise be gone too long at distant lunch spots would be deductible for the employer and not taxed to the worker.
Even if the meals couldn't be considered for the employer's convenience, they might still be tax-favored under Section 132(e) of the tax code as a de minimis fringe benefit—something so small or inconsequential as to not be worthy of attention. For tax purposes, it means something that has so little value that accounting for it would be unreasonable or administratively impracticable. Typically, this includes items such as coffee, doughnuts, or soft drinks, as well as occasional meals provided to allow employees to work overtime (although how coffee could be considered so inconsequential as not to be worthy of attention is a mystery to me).
The de minimis exclusion also applied in most cases to restaurants' staff meals—the kind you see in The Bear . (Technically, it's deductible if the facility's annual revenue equals or exceeds its direct operating costs. Direct operating costs include the cost of food, beverages, and labor costs for cooks and waitstaff, and others who provide services primarily on the premises.)
Note that the meals that qualified for the convenience of the employer and the food provided under the de minimis fringe benefit weren't (and still won't be) taxable to the employees. That was a win-win, since employees were not taxed on the perk and employers got a deduction. Trump 1.0: TCJA
The TCJA made several changes to the tax treatment of meals and entertainment expenses. Entertainment expenses were disallowed. Plus, that 2017 law created section 274(o), which, beginning in 2026, disallows 100% of the deduction for expenses for food or beverages provided to employees, as well as expenses for the operation of certain eating facilities for employees.
As part of the Congressional pattern of frontloading tax goodies and backloading tax pain, the TCJA provided that through 2025, 50% of the cost of on-site employee meals would be deductible (provided it was for the employer's convenience). And, although de minimis snacks aren't considered meals, they were also 50% deductible under the TCJA rules. Trump 2.0: The One Big Beautiful Bill Act
The new tax law extended many expiring tax provision in TCJA, but did not extend the rules that had temporarily allowed deductions for snacks and employer convenience perks. Both are now set to expire at the end of the year, which means that U.S. companies that provide snacks, coffee, or on-site meals at the office will no longer receive a tax deduction for doing so.
You might think that it was just an oops—that Congress forgot that the provision might expire. But that's not the case. OBBBA didn't roll back the provision for all industries—two notable exceptions have been carved out.
One exception applies to very specific businesses—those on a fishing vessel, fish processing vessel, or fish tender vessel, or at a facility for the processing of fish for commercial use or consumption located in the U.S. north of 50 degrees north latitude, and is not located in a metropolitan statistical area. It might not surprise you to learn that the only state north of 50 degrees north latitude is Alaska. Notably, the lobster industry wasn't similarly spared; Sen. Susan Collins (R-Maine) was a no vote on OBBBA.
A second exception applies to establishments that sell food and beverages to customers and also provide meals to their employees—in other words, restaurants. The restaurant industry can continue deducting employee meal expenses for kitchen and waitstaff.
As for everybody else? Businesses outside of the Alaskan fishing industry and restaurants may be out of luck now, but Congress apparently thinks it's worth it. The Joint Committee on Taxation found that eliminating the deduction will raise $32.5 billion over the next decade. That might not seem like a lot of money in a law that includes tax cuts that will reduce federal revenues by $4.475 trillion between 2025 and 2034. But consider this: The $25,000 tax deduction for tips, which lasts only through 2028, costs just $32 billion.
And here's the weird part, the cost of throwing holiday parties for employees will still be 100% deductible. As for business meals—if say, an employee is taking a potential client to dinner—that is now, and will still be, 50% deductible. Will Employers Care About A Deduction Lost?
Food at the office can be a big draw for employees. A 2023 survey found that 80% of workers say catered meals encourage them to come into the office.
And anyone who is a regular reader knows that the pull of free coffee and a snack can get me in the door. Plus, let's face it: Sometimes the little, consumable things make a big difference, with 98% of employees saying free meals at work made them feel appreciated. Nearly two-thirds of those who receive free meals say it helps them eat healthier food, and over half (55%) of those who don't receive free meals say they would feel less stressed if they did.
For employers, the small act of providing food to busy employees goes a long way towards retention. The survey—which we should point out was sponsored by EZCater, which delivers food to workplaces—found that seven out of ten tax professionals said they'd be more likely to stay at their company if they received free meals during the busy season. On the employer side, investing in employees' meals benefits overall well-being, work performance, and, importantly, employee retention.
How much difference will the loss of the tax deduction make? That remains to be seen, but no doubt some employers will be putting out the B.Y.O.S. sign.
More from Forbes Forbes IRS Issues Guidance On New Deductions For Seniors, Tips, Overtime And Car Interest By Kelly Phillips Erb Forbes What The One Big Beautiful Bill Act Will Mean For You And Your Business By Kelly Phillips Erb Forbes Questions About The New Tax Bill? Taxgirl Has Answers By Kelly Phillips Erb Forbes This Barely Used Child Care Tax Break For Employers Just Got An Overhaul By Danielle Chemtob
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Copper Rises to Start Pivotal Week Ahead of US Tariffs Deadline
Copper Rises to Start Pivotal Week Ahead of US Tariffs Deadline

Yahoo

time15 minutes ago

  • Yahoo

Copper Rises to Start Pivotal Week Ahead of US Tariffs Deadline

(Bloomberg) -- Copper rose along with equities after the European Union's deal with the US averted a damaging rift between the two major economies, while traders watch for final details on imminent US tariffs on the industrial metal. The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Budapest's Most Historic Site Gets a Controversial Rebuild Trump Administration Sues NYC Over Sanctuary City Policy Benchmark prices edged higher on the London Metal Exchange, following a tariff agreement that will see the EU face 15% levies on most exports. The deal comes ahead of a US-China meeting in Stockholm that's expected to extend a trade truce for 90 more days. But for copper, the most anticipated development will be the launch of a touted 50% tariff on the metal, with details still unclear ahead of their planned start date on Friday. President Donald Trump's administration hasn't so far confirmed important aspects of the duties, including which products will be covered, whether supplies from all nations will be hit equally, or how metal already on its way to US shores will be treated. Global traders have shipped massive amounts of copper to America to get ahead of tariffs, and Trump's announcement of an Aug. 1 deadline earlier this month triggered a last-minute scramble. Prices in the US are now much higher than those on the LME, but they don't fully reflect a 50% universal tariff rate on all exchange-traded copper. The premium now stands at about 30%. Further important developments lie ahead this week. The Federal Reserve is expect to keep rates unchanged at the conclusion of its policy meeting on Wednesday, but its commentary will be scrutinized for clues on what comes next. There's also a deluge of US data, from the latest on economic growth to jobs. Copper rose 0.6% to $9,824.50 a ton on the LME as of 11:51 a.m. in London. Aluminum was steady while zinc and nickel both edged 0.6% lower. The Bloomberg Dollar Spot Index rose 0.4%. (A previous version of this story corrected the planned date for start of US tariffs.) Burning Man Is Burning Through Cash It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme Scottish Wind Farms Show How to Counter Nimby Opposition ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

A&R Group acquires Fairfield Inn & Suites property in Destin, Florida
A&R Group acquires Fairfield Inn & Suites property in Destin, Florida

Yahoo

time15 minutes ago

  • Yahoo

A&R Group acquires Fairfield Inn & Suites property in Destin, Florida

Hotel development and investment company A&R Group has broadened its portfolio by acquiring the Fairfield Inn & Suites by Marriott in Destin, Florida, as part of its southeastern US growth plan. The deal was capitalised with an $18m budget, which encompasses conventional senior debt financing provided by Pen Air Credit Union. A&R Group has announced plans for an extensive renovation of the hotel, set to start in the fourth quarter of 2025. Expected to be completed by mid-2026, the refurbishment will encompass updates to the guest rooms, public areas, and exterior, ensuring the property meets Marriott's latest brand standards. The hotel will maintain operations under the Fairfield Inn & Suites brand, supported by a 24-year franchise agreement with Marriott, which provides access to Marriott's worldwide distribution network and a loyalty programme with over 200 million members. The Fairfield Inn & Suites by Marriott is located along the Emerald Coast Parkway, close to Henderson Beach State Park and the Destin Commons retail district. A&R group development president Zach Hoyt said: 'This acquisition aligns perfectly with our long-term strategy of investing in high-barrier-to-entry markets with strong year-round tourism and upside potential. 'Destin is one of the Gulf Coast's premier destinations, and this hotel offers both stable in-place income and meaningful value-add opportunity.' The acquisition of the Destin hotel increases A&R Group's portfolio to more than 25 hotels across six states, including brands from Hilton, Marriott, and IHG. This acquisition is said to be a key part of the company's strategy to grow its portfolio in regions with strong tourism and high barriers to entry. A&R Group CEO Ken Patel said: 'Our firm is focused on creating long-term value for our partners by combining operational excellence with a disciplined investment strategy. 'We're excited to bring that philosophy to the Florida Panhandle.' "A&R Group acquires Fairfield Inn & Suites property in Destin, Florida" was originally created and published by Hotel Management Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Bodega Ai and SignaPay Launch Strategic Partnership to Empower Small Business Owners with Smarter, Faster, More Profitable POS Solutions
Bodega Ai and SignaPay Launch Strategic Partnership to Empower Small Business Owners with Smarter, Faster, More Profitable POS Solutions

Yahoo

time15 minutes ago

  • Yahoo

Bodega Ai and SignaPay Launch Strategic Partnership to Empower Small Business Owners with Smarter, Faster, More Profitable POS Solutions

DALLAS, July 28, 2025 /PRNewswire/ -- SignaPay, the leader in Dual Pricing technology, is thrilled to announce its partnership with Bodega Ai, an intelligent, all-in-one point-of-sale platform that's redefining how small businesses launch, grow, and thrive. Built from the ground up with entrepreneurs in mind, Bodega Ai fuses cutting-edge AI technology with PayLo Dual Pricing to deliver a smarter POS system—designed to simplify operations, eliminate pricing confusion, and maximize profit margins. "Bodega Ai isn't just another POS—it's your smartest employee, ready on day one," said Jason Diaz, Founder of Bodega Ai. "From Ai-powered revenue generation, instant language adaption, and frictionless onboarding, we're giving small retailers the kind of power the big chains take for granted." At the core of Bodega Ai is its adaptive AI engine—offering real-time inventory suggestions, customer behavior analysis, and automated sales reporting that helps business owners make sharper decisions, faster. The platform is currently available in over 12 languages, with the ability to add more as needed, making it a go-to solution for diverse, multilingual communities. To ease startup pains, Bodega Ai comes pre-loaded with more than 200,000 of the most sold retail SKUs, allowing new merchants to hit the ground running—no tedious data entry required. "This is the most intelligent and accessible POS solution we've ever brought to market," said Matt Nern, Executive Vice President and Chief Revenue Officer at SignaPay. "Pairing AI-driven insights with PayLo Dual Pricing gives merchants an unbeatable edge from day one—better tools, faster setup, and stronger profits." Limited-Time Offer: Free POS System As part of the national rollout, qualifying SignaPay Partners are eligible to place a Bodega Ai POS system free of charge to the merchants they serve. For details and eligibility, interested SignaPay Partners are encouraged to connect with a SignaPay Relationship Manager to learn more about this exclusive opportunity. Not a SignaPay Partner? Reach out to Matt Nern today at mattn@ or call today 877-751-2891 to learn more. About Bodega Ai Bodega Ai is an advanced, AI-powered point-of-sale system designed for the modern entrepreneur. With multilingual support, smart inventory tools, and intuitive reporting, Bodega Ai empowers merchants to launch and grow with confidence. About SignaPay SignaPay is a payment technology provider and the pioneer of PayLo Dual Pricing, the most trusted and compliant dual pricing solution in the U.S. SignaPay helps businesses improve profitability with innovative, transparent payment systems tailored for small business success. Media Contact: Sean Martillo Marketing Manager, SignaPay marketing@ 800-944-1399 View original content to download multimedia: SOURCE SignaPay Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store