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What is the correct category for a employee meal that is for training in the office.

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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Best answer 10-15-2018

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Established Community Backer ***

You can create 3 subcategories of Meals and Entertainment...

You can create 3 subcategories of Meals and Entertainment if you wish. Fully deductible, half deductible, not deductible. Post only in the 3 subs, the top level is a summing account. All your business meals are generally 100% reportable on a P&L, it is just the tax return where it differs. Most tax accounting software will do the calculations based on the individual totals entered.

Or you can use just the one M&E, keeping track of different types in a separate spreadsheet or notes.

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Established Community Backer ***

You can create 3 subcategories of Meals and Entertainment...

You can create 3 subcategories of Meals and Entertainment if you wish. Fully deductible, half deductible, not deductible. Post only in the 3 subs, the top level is a summing account. All your business meals are generally 100% reportable on a P&L, it is just the tax return where it differs. Most tax accounting software will do the calculations based on the individual totals entered.

Or you can use just the one M&E, keeping track of different types in a separate spreadsheet or notes.

View solution in original post

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How do you make the actual sub category

How do you make the actual sub category
Established Community Backer ***

Meals at the office for training sessions and for the con...

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.


Community Contributor *

Re: Meals at the office for training sessions and for the con...

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.

Established Community Backer ***

Re: Meals at the office for training sessions and for the con...

These are entered as Office Supplies: "Neither is coffee and snacks"

 

Example: a Salon keeps a coffee bar for Patrons in the waiting room = Supplies. Not Meals.

Community Contributor *

Re: Meals at the office for training sessions and for the con...

I've seen so many conflicting opinions and articles my head is spinning!

Community Contributor *

Re: Meals at the office for training sessions and for the con...

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.

Established Community Backer ***

Re: Meals at the office for training sessions and for the con...

Water and Snacks in a Conference room or generally made available to Staff is not the same as a Hospitality Bar for waiting clients.

Community Contributor *

Re: Meals at the office for training sessions and for the con...

Agreed, but the poster was talking about employees so that is what I was replying about.

EVH
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Re: How do you make the actual sub category

Please provide the actual steps to sub categories

Moderator

Re: How do you make the actual sub category

Hello EVH,

 

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:

 

  1. Click the Gear icon in the located in the upper-right corner.
  2. Below Your Company, click Chart of Accounts.
  3. Click New.
  4. Below Account Type, select Expenses.
  5. Below Detail Type, choose the detail type.
  6. Enter a name.
  7. Put a check mark beside Is sub-account.
  8. Click Save and Close.

 

For more insights, I'm adding the article about creating parent accounts and subaccounts:

 

How to create a new parent account or subaccount.

 

Please keep in touch with me here for all of your questions concerning the accounts. I'm always up to lend a hand.

Not applicable

Re: Meals at the office for training sessions and for the con...

Thank you for this. These articles opened up a powerful discussion that needed to happen.

 

 

 

 

 

 

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