An end to free meals? Forum

[futuresenator9]

Heard that Sidley and some other firms ended their free meals? What firms still have them and what firms have nixed them ... ?

[Anonymous User]

Is this end of seamless or was Sidley's cafeteria previously free or something?

[Anonymous User]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

[Anonymous User]

OP here -- I am referring to the in-house cafeterias that went free to get people to come back after covid, not the rules about ordering dinner if you're in the office past a certain hour

[Anonymous User]

K&E serves in-house breakfast and lunch and its "kitchen / pantry" food is all still free. Hope this stays, makes coming into the office much more justifiable.

[Anonymous User]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?

[Anonymous User]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?

Kind of. But it's also discounted/subsidized on the front end (e.g., a steak, potato, and broccoli lunch today was ~$13, a greek salad was ~$7). I assume all the other "free lunch" places are either taxing as well, or I guess grossing up. (B/c IIRC, you can't just give employees free lunch unless you have a justification like they aren't allowed to leave their desks or something.)

[Anonymous User]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?

Kind of. But it's also discounted/subsidized on the front end (e.g., a steak, potato, and broccoli lunch today was ~$13, a greek salad was ~$7). I assume all the other "free lunch" places are either taxing as well, or I guess grossing up. (B/c IIRC, you can't just give employees free lunch unless you have a justification like they aren't allowed to leave their desks or something.)

I don't think so. K&E serves free breakfast and lunch and kitchen pantry is open and its all totally free, they don't even track who uses it what days and its open to all lawyers and staff. So really no way to be taxed individually.

[Anonymous User]

K&E makes it worth it to come in. Coffee bar, snacks galore, breakfast and lunch in the New York office at least.

It’s hard for me to imagine having to buy a $15 salad or sandwich and make coffee runs every day like when I was a junior.

[Anonymous User]

K&E makes it worth it to come in. Coffee bar, snacks galore, breakfast and lunch in the New York office at least.

It’s hard for me to imagine having to buy a $15 salad or sandwich and make coffee runs every day like when I was a junior.

Coffee for yourself or others, intern style?

[Anonymous User]

K&E makes it worth it to come in. Coffee bar, snacks galore, breakfast and lunch in the New York office at least.

It’s hard for me to imagine having to buy a $15 salad or sandwich and make coffee runs every day like when I was a junior.

Coffee for yourself or others, intern style?

Ha! For myself. Though, I saw a summer associate threaten to quit when a partner asked them to grab them a coffee.

[Wanderingdrock]

K&E makes it worth it to come in. Coffee bar, snacks galore, breakfast and lunch in the New York office at least.

It’s hard for me to imagine having to buy a $15 salad or sandwich and make coffee runs every day like when I was a junior.

Coffee for yourself or others, intern style?

Ha! For myself. Though, I saw a summer associate threaten to quit when a partner asked them to grab them a coffee.

That summer might want to reconsider their career track if they're gonna flip every time a partner asks them to do something demeaning.

[Anonymous User]

Heard that Sidley and some other firms ended their free meals? What firms still have them and what firms have nixed them ... ?

Lmao Sidley tried to sell me on their free lunch over the summer when I did my second look.

[papermateflair]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?

Kind of. But it's also discounted/subsidized on the front end (e.g., a steak, potato, and broccoli lunch today was ~$13, a greek salad was ~$7). I assume all the other "free lunch" places are either taxing as well, or I guess grossing up. (B/c IIRC, you can't just give employees free lunch unless you have a justification like they aren't allowed to leave their desks or something.)

wow. love to hear about places that actually read the rules re: taxation of company meals and listened to their tax attorneys.

[Anonymous User]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?

Kind of. But it's also discounted/subsidized on the front end (e.g., a steak, potato, and broccoli lunch today was ~$13, a greek salad was ~$7). I assume all the other "free lunch" places are either taxing as well, or I guess grossing up. (B/c IIRC, you can't just give employees free lunch unless you have a justification like they aren't allowed to leave their desks or something.)

wow. love to hear about places that actually read the rules re: taxation of company meals and listened to their tax attorneys.

More places should just shove their tax people into lockers like the nerds they are instead of listening to them on this ticky tacky stuff.

[papermateflair]

Williams & Connolly still has free* lunch in its cafeteria for all attorneys and staff. (*You are taxed on the value of the food, but only based on what you actually "buy." There is an online order system / there are cash registers but only for tax tracking purposes.)

So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?

Kind of. But it's also discounted/subsidized on the front end (e.g., a steak, potato, and broccoli lunch today was ~$13, a greek salad was ~$7). I assume all the other "free lunch" places are either taxing as well, or I guess grossing up. (B/c IIRC, you can't just give employees free lunch unless you have a justification like they aren't allowed to leave their desks or something.)

wow. love to hear about places that actually read the rules re: taxation of company meals and listened to their tax attorneys.

More places should just shove their tax people into lockers like the nerds they are instead of listening to them on this ticky tacky stuff.

What a brave thing to say anonymously!

[AAPLTSLADIS]

https://imgflip.com/i/750p5r

[Anonymous User]

Latham just announced during our associate town hall that the free breakfast and lunch that started during covid will be coming to an end in Q1/Q2 2023. Pretty bummed about it because it was the only reason I came to the office (the food is really good!).

[Anonymous User]

Latham just announced during our associate town hall that the free breakfast and lunch that started during covid will be coming to an end in Q1/Q2 2023. Pretty bummed about it because it was the only reason I came to the office (the food is really good!).

K&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.

[Anonymous User]

Latham just announced during our associate town hall that the free breakfast and lunch that started during covid will be coming to an end in Q1/Q2 2023. Pretty bummed about it because it was the only reason I came to the office (the food is really good!).

K&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.

I don't see how this works under the tax code. During covid I guess they probably claimed that all the restaurants nearby were closed, so they had to provide meals, but that's obviously not true anymore. Seems like this must be taxable at this point.

[Anonymous User]

Latham just announced during our associate town hall that the free breakfast and lunch that started during covid will be coming to an end in Q1/Q2 2023. Pretty bummed about it because it was the only reason I came to the office (the food is really good!).

K&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.

I don't see how this works under the tax code. During covid I guess they probably claimed that all the restaurants nearby were closed, so they had to provide meals, but that's obviously not true anymore. Seems like this must be taxable at this point.

It's buffet style and not taxed. Nobody orders anything so how can they track who is actually taking what?

[taxlawBCS]

https://tax.thomsonreuters.com/news/emp ... s-fringes/

I think K&E is safe.

[Anonymous User]

Latham just announced during our associate town hall that the free breakfast and lunch that started during covid will be coming to an end in Q1/Q2 2023. Pretty bummed about it because it was the only reason I came to the office (the food is really good!).

K&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.

I don't see how this works under the tax code. During covid I guess they probably claimed that all the restaurants nearby were closed, so they had to provide meals, but that's obviously not true anymore. Seems like this must be taxable at this point.

It's buffet style and not taxed. Nobody orders anything so how can they track who is actually taking what?

Yes, and that's the problem. It's a fringe benefit provided to employees, with nontrivial value, that the IRS says they should be taxed on. https://www.irs.gov/publications/p15b#e ... 1000193712. Maybe they have some argument based on the tax code that they're ok, but I can't see how it's justified based on what's in that link.

[Anonymous User]

Suffice to say, I’m sure Kirkland and every other firm knows the tax rules and have made educated choices on how to deal with the fringe benefit point. For the time being there is still a federally declared disaster, you know. Lots of firms are going to be changing their policies in q1/q2. Some may not and instead do backend stuff. It’ll become something of a differentiator depending on firms’ risk tolerance. But all of these firms have their taxes being done by a big4 accounting firm plus in house people plus people in their tax department, so I think they’re covered.

[Anonymous User]

Suffice to say, I’m sure Kirkland and every other firm knows the tax rules and have made educated choices on how to deal with the fringe benefit point. For the time being there is still a federally declared disaster, you know. Lots of firms are going to be changing their policies in q1/q2. Some may not and instead do backend stuff. It’ll become something of a differentiator depending on firms’ risk tolerance. But all of these firms have their taxes being done by a big4 accounting firm plus in house people plus people in their tax department, so I think they’re covered.

First of all, no, they don't all use big-four accounting firms. Not sure where you got that idea.

Second, my point is not that they're committing fraud, but rather that this probably won't last forever. I agree that they probably justified it with covid, but at some point that won't work any longer.