Interestingly, there's a pretty universal consensus among tax lawyers that not charging for employee lunches is problematic. Free, regular lunches are another form of compensation and, as such, should be listed on an employee's W-2 as additional taxable income.[1]
In general, anything of value that an employer gives you as compensation is taxable income to you unless an exclusion applies. There is an exclusion in section 119 of the tax code[2] for meals provided by an employer "for the convenience of the employee."
This has was intended to cover things like the cafeteria on an oil rig where alternatives are truly limited.
There was some talk of the IRS publishing regulations that would clarify this, but I don't think that's happened.
Strange headline.
Jobs was being compensated for meals.
As mentioned in the story, yes he had a $1/yr salary (and of course money in the bank) but even entry-level employees at many corporations are compensated for meals.
Some shlub in accounting probably set things up so this went through under "contractor expenses", or something of that type.
This reinforces a suspicion I've had for a while, which is that at the billionaire level things happen magically around you. Many mundane problems simply disappear because there are people looking after them for you - but you have no idea who they are, what they do, or even that they exist.
I can just imagine how pissed Tim Cook is right now. For years he's enjoyed his lunches for free, too. But now the spotlight will be on the accounting department.
As a side note, when I watched this last night I really enjoyed Scott's story telling. Specifically when this bit was told I laughed out loud. Don't think I've done that to an internet video for quite some time.
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[ 2.8 ms ] story [ 19.2 ms ] threadIn general, anything of value that an employer gives you as compensation is taxable income to you unless an exclusion applies. There is an exclusion in section 119 of the tax code[2] for meals provided by an employer "for the convenience of the employee."
This has was intended to cover things like the cafeteria on an oil rig where alternatives are truly limited.
There was some talk of the IRS publishing regulations that would clarify this, but I don't think that's happened.
[1] e.g. http://taxprof.typepad.com/taxprof_blog/2013/04/wsj-.html
[2] https://www.law.cornell.edu/uscode/text/26/119
This reinforces a suspicion I've had for a while, which is that at the billionaire level things happen magically around you. Many mundane problems simply disappear because there are people looking after them for you - but you have no idea who they are, what they do, or even that they exist.
As a side note, when I watched this last night I really enjoyed Scott's story telling. Specifically when this bit was told I laughed out loud. Don't think I've done that to an internet video for quite some time.