I am trying to account for employee meals for meetings, training and days when we have to work through lunch and have to eat while we work. I want to separate these expenses from the business meals and entertainment which are outside the office and are only partially written off. What is the appropriate category for these expenses?
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Meals at the office for training sessions and for the convenience of the employer, such as expecting everyone to stay over or work through lunch, is 100% expense as Business Meals or Supplies expense. Make a separate account for this.
Meals and Entertainment is 50% deductible. Don't mix the two. What happens is, the CPA takes 50% of something already entered at 50%, or 50% of everything reported, but some qualifies as 100%.
"Or you can use just the one M&E, keeping track of different types in a separate spreadsheet or notes."
But using QB puts this in one place, and that is the point. You don't need external notes or a second program; all you need a separate Expense account.
With the 2017 TCJA, meals at the office and for the convenience of the employer are no longer fully deductible. Neither is coffee and snacks. They are 50% deductible through 2025 and then go to 0% deductible.
Articles with good details:
In the chart listed in your first link, it shows that "Water, Coffee, and Snacks at the Office" goes to 50% deductible for 2018 and 0% after 2025. The 2nd and 4th links also say the same thing.
Thank you for posting here in the Community. Allow me to assist you with creating subaccounts in QuickBooks Online.
If you're trying to create sub-categories for Meals and Entertainment, you can follow these steps:
For more insights, I'm adding the article about creating parent accounts and subaccounts:
Please keep in touch with me here for all of your questions concerning the accounts. I'm always up to lend a hand.
Allow me to share some information about meal expenses and tax deductions on your Profit and Loss, EMV8.
You could generally deduct 50% of meals and entertainment expenses unless a specific exception is applied in which they would be 100 deductible. Tax reform has eliminated the tax deduction for most business entertainment expenses. But there are always exceptions to the rule.
In addition, as mentioned by @john-pero, you can create subcategories of Meals and Entertainment fully deductible, half deductible, not deductible. Since all your business meals are generally reported 100% on your P&L, it is just the tax return where it differs. Usually, almost all the tax accounting software will do the calculations based on the individual totals entered.
Please read these articles for more information:
For more helpful articles, I've added this link for your reference.
Reach out to us if you have questions about meal expenses. Remember, we're always right here to help you if you need assistance in anything.