funny title - maybe it is break time.
actually i have a corp and they provide office snacks everyday for employees and clients (they do have clients come in almost daily) - they have booked to office expense. should it not be meals & entertainment.
they already include functions not more then 6 for office parties under office
thx
The snacks provided to staff are technically a taxable benefit and therefore can be fully deducted but must be reported on the T4. Those provided to clients should be meals. Good luck doing the saw off between the two though!
https://www.cpacanada.ca/news/pivot-magazine/2019-06-24-employee-incentives
Since you are asking the question, I feel it must be a significant amount of monies spent.
My experience in rural NB has only been minor items such as mints or small seasonal chocolates at front desk, water, coffee pot///. which I charge off to Office expense.
A few dollar store treats are not exactly employee incentives that this article is referring to.
Per the article there are some generous employers out there AND yes these items can definitely adds up over the year and must be calculated and added as a taxable benefit.
thank you so much for your timely and helpful responses.
I will review with client.
Do you keep track of how much of the coffee and snacks are eaten by staff and how much by customers? What about the person who only drinks water and eats no snacks? Do you have to keep track by employee versus customer and also by employee? I charge this to office supplies.
Meals claims would need to show who was entertaining and who was entertained. I would not expect to use the meals claim. My first question would be about other meals claims - how many of the actual meals claimed are legitimate? I think you are straining at a gnat and swallowing the camel.
For my clients… it is insignificant… like $20-25/month and no I do not ask them to track it.
How would you know whom ate the mints at the front counter? Which client declined coffee or water and which accepted. Staff have better things to track then that.
OP must have a significant amount to ask the question.