Upcoming Changes to Employer-Provided Meal Deductions: What You Need to Know

For most organizations, the tax rules around employer-provided meals are about to get stricter. The One Big Beautiful Bill Act will uphold the planned elimination of the employer deduction for these meals after 2025 — as originally set by the Tax Cuts and Jobs Act.

Beginning in 2026, employers will only be able to fully deduct the cost of eligible meals if they’re sold to employees. This means meals provided for convenience, meetings, or company events will generally no longer be deductible.

If this change impacts your organization, now is the time to prepare.

Consider the following:

• Reviewing and revising your meal policies to reflect the new rules.

• Updating your employee handbook and expense policies accordingly.

• Training supervisors and managers so they can communicate these updates clearly to employees.

A proactive communication strategy will help ensure a smooth transition and minimize confusion. Need help navigating these changes or evaluating their impact? Contact us for expert guidance and practical solutions.

About Bruce & Company, P.S.C.

Founded in 1976 by Gregory T. Bruce, Bruce & Company, P.S.C. is a full-service accounting firm proudly serving clients regionally, nationally, and globally, with our central office located in Madisonville, KY. For more than four decades, we’ve delivered trusted expertise in tax, financial planning, and auditing. Our knowledgeable team is dedicated to providing personalized service and practical solutions to help individuals and businesses achieve their financial goals. Contact us to learn more about how we can support you!