As a general rule, most businesses can only deduct 50% of business meals.  There are several exceptions to this rule.  One exception is the “Convenience of Employer” rule.

How it works:

To achieve the 100% deduction, you have to serve the meal on your businesses premises, and you have to have provided the meal for “your business convenience”.

Examples:

  • Meals are served to make employees available for emergency calls
  • Meals are furnished so that the employee can work through their lunch-break
  • There are insufficient eating facilities in the vicinity and you want to keep your employees working instead of driving around looking for food
  • Meals are furnished for some other substantial non-compensatory business reason (you are furnishing the meals for a business reason and not simply to give the employee a “bonus”