An end to free meals?
Posted: Sun Dec 18, 2022 11:50 pm
Heard that Sidley and some other firms ended their free meals? What firms still have them and what firms have nixed them ... ?
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So assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?Anonymous User wrote: ↑Mon Dec 19, 2022 9:24 amWilliams & 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.)
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 wrote: ↑Mon Dec 19, 2022 2:09 pmSo assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?Anonymous User wrote: ↑Mon Dec 19, 2022 9:24 amWilliams & 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.)
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 wrote: ↑Mon Dec 19, 2022 2:58 pmKind 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 wrote: ↑Mon Dec 19, 2022 2:09 pmSo assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?Anonymous User wrote: ↑Mon Dec 19, 2022 9:24 amWilliams & 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.)
Coffee for yourself or others, intern style?Anonymous User wrote: ↑Mon Dec 19, 2022 4:21 pmK&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.
Ha! For myself. Though, I saw a summer associate threaten to quit when a partner asked them to grab them a coffee.Anonymous User wrote: ↑Mon Dec 19, 2022 4:45 pmCoffee for yourself or others, intern style?Anonymous User wrote: ↑Mon Dec 19, 2022 4:21 pmK&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.
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 wrote: ↑Mon Dec 19, 2022 4:51 pmHa! For myself. Though, I saw a summer associate threaten to quit when a partner asked them to grab them a coffee.Anonymous User wrote: ↑Mon Dec 19, 2022 4:45 pmCoffee for yourself or others, intern style?Anonymous User wrote: ↑Mon Dec 19, 2022 4:21 pmK&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.
Lmao Sidley tried to sell me on their free lunch over the summer when I did my second look.futuresenator9 wrote: ↑Sun Dec 18, 2022 11:50 pmHeard that Sidley and some other firms ended their free meals? What firms still have them and what firms have nixed them ... ?
wow. love to hear about places that actually read the rules re: taxation of company meals and listened to their tax attorneys.Anonymous User wrote: ↑Mon Dec 19, 2022 2:58 pmKind 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 wrote: ↑Mon Dec 19, 2022 2:09 pmSo assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?Anonymous User wrote: ↑Mon Dec 19, 2022 9:24 amWilliams & 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.)
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 wrote: ↑Mon Dec 19, 2022 11:22 pmwow. love to hear about places that actually read the rules re: taxation of company meals and listened to their tax attorneys.Anonymous User wrote: ↑Mon Dec 19, 2022 2:58 pmKind 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 wrote: ↑Mon Dec 19, 2022 2:09 pmSo assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?Anonymous User wrote: ↑Mon Dec 19, 2022 9:24 amWilliams & 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.)
What a brave thing to say anonymously!Anonymous User wrote: ↑Tue Dec 20, 2022 2:06 amMore 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 wrote: ↑Mon Dec 19, 2022 11:22 pmwow. love to hear about places that actually read the rules re: taxation of company meals and listened to their tax attorneys.Anonymous User wrote: ↑Mon Dec 19, 2022 2:58 pmKind 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 wrote: ↑Mon Dec 19, 2022 2:09 pmSo assuming a 45% tax bracket, they are effectively selling food to employees with a 55% discount?Anonymous User wrote: ↑Mon Dec 19, 2022 9:24 amWilliams & 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.)
K&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.Anonymous User wrote: ↑Sat Dec 24, 2022 2:18 amLatham 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!).
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 wrote: ↑Sun Dec 25, 2022 4:09 pmK&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.Anonymous User wrote: ↑Sat Dec 24, 2022 2:18 amLatham 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!).
It's buffet style and not taxed. Nobody orders anything so how can they track who is actually taking what?Anonymous User wrote: ↑Sun Dec 25, 2022 4:19 pmI 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 wrote: ↑Sun Dec 25, 2022 4:09 pmK&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.Anonymous User wrote: ↑Sat Dec 24, 2022 2:18 amLatham 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!).
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 wrote: ↑Sun Dec 25, 2022 7:15 pmIt's buffet style and not taxed. Nobody orders anything so how can they track who is actually taking what?Anonymous User wrote: ↑Sun Dec 25, 2022 4:19 pmI 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 wrote: ↑Sun Dec 25, 2022 4:09 pmK&E doubled down on free meals by expanding kitchen sizes and hiring new chefs and baristas.Anonymous User wrote: ↑Sat Dec 24, 2022 2:18 amLatham 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!).
First of all, no, they don't all use big-four accounting firms. Not sure where you got that idea.Anonymous User wrote: ↑Mon Dec 26, 2022 7:56 amSuffice 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.