Free Meals At Google, Facebook And Yahoo, May Not Be 'Free' At All


Bangalore: The employees at Google, Facebook and Yahoo may evoke envy in others for getting fat pay checks and amazing perks like free meals. But according to a report by Haffington Post, it turns out that all those free lunches aren’t free at all.

The free meals should actually be taxed according to the tax expert Martin J. McMahon, Jr., professor of tax law at the University of Florida. He says that the companies like Google, Facebook and Yahoo report these meals as tax free fringe benefits, when they should be considered taxable fringe benefits. And he also opines that, the cost of these meals should be considered as part of the employee’s salary.

 “Let's say that an employee gets $2,000 in free meals and makes $50,000 a year. The company should report to the IRS that it paid the employee $52,000 in compensation on which the employee would be taxed,” McMahon adds.

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