Tech giant employees could have their free food taxed
There's a lot of advantages and perks when it comes to working for some of the big tech giants like Google. One being, the awesome free food that employees get to enjoy. However, that could change if the IRS have their way.
Tech companies like Google, Facebook, and even a number of startups provide their employees with all kinds of perks in order to either entice new prospective employees to join the company, or keep existing ones happy. One of the most popular perks, and one that gets a lot of press, is the world class free food that is provided by the company; with the keyword being free.
However, that may all change if a report from the Wall Street Journal is any indication. According to the report, all this free food has caught the eye of the Internal Revenue Service (IRS) and they are investigating whether or not employees should pay additional taxes on all that free food that is part of their compensation package.
According to WSJ writer Mark Maremont, the rules around fringe benefits are on the complex side, but according to the rules, the IRS categorizes meals that are regularly provided by the company as a taxable perk. This has led many leading tax experts to wonder if the companies that are providing this type of perk aren't in fact skirting the tax laws.
There are some accounting experts who apparently think that these free meals should be counted as taxable income, a part of the employee's compensation package; and considering that if the meals were to be charged at $8 to $10, it would mean a tax hit of almost $5,000 for some.