Also known as: employer's business premises · business premises · employer's premises · workplace
Written by attorneys · grounded in primary & secondary sources — see below
The physical site where an employer carries on its trade or business and where employees perform their duties. This location satisfies the on-premises requirement for excluding the value of employer-furnished meals and lodging from an employee's gross income.
Boubacar Bah works the night shift at Bright Path Foods' main production plant. The company provides free dinners in the employee cafeteria located inside the plant gates. Because the cafeteria sits on the business premises of the employer, the value of the meals is excluded from Boubacar's taxable income.
Byron Bishop serves as the on-call facilities manager for Beacon Bank. The bank requires him to live in an apartment attached to the headquarters building so he can respond immediately to after-hours alarms. The apartment is on the business premises of the employer, allowing exclusion of the lodging's value from his income when the other statutory conditions are met.
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The meals must be furnished for the convenience of the employer and on the business premises of the employer. Both conditions are required under the statute.
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Yes. Lodging must also be furnished on the business premises of the employer, in addition to being for the employer's convenience and accepted as a condition of employment.
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The value is included in the employee's gross income because the statutory exclusion does not apply.
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