No more free lunch? IRS may tax tech company perk

No more free lunch? IRS may tax tech company perk

Credit: Justin Sullivan/Getty Images

A Google employee has lunch at the 'No Name Cafe', an organic eatery at the Googleplex May 11, 2006 in Mountain View, California.

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by KING 5 News

KREM.com

Posted on April 9, 2013 at 3:07 PM

Updated Tuesday, Apr 9 at 3:32 PM

Employees at tech companies might have to pay for free meals at work soon.

According to the Wall Street Journal, the Internal Revenue Service is considering taxing the free meals employees at companies like Google and Facebook recieve at work.

While the IRS seems to be focusing on Silicon Valley, people working in Seattle could be affected with so many tech companies opening branches here or offering similar perks.

The IRS is trying to decide whether free food is a fringe benefit (like a company car, for example) for which employees should have to pay an additional tax, the Wall Street Journal said.

Whether or not employees will end up paying for the tax depends on the companies. Some places may build the tax into paychecks, increasing pay to match the tax payment.

With Google serving over 50,000 meals a day in more than 120 cafes, according to its website, that certainly could add up quickly.

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