Claim a Deduction for Providing Meals to Your Construction Crew

by Craig Anthony

1 min read

If you have a construction crew working in a remote location and you provide meals for them, the Canada Revenue Agency allows you to write off the entire cost of the meals as a business expense. To qualify, your workers must not be able to return home daily. If your construction crew is not in a remote location, you typically don’t qualify for this business deduction, but there are other options. In particular, you can offer workplace meals as a benefit to your employees. In this scenario, you don’t directly write off the cost of the meal. Instead, you report the cost of the meal as a taxable benefit on each employee’s paycheque. This means your employees have to pay income tax and Canada Pension Plan contributions on that amount. Then, you write off the value of the benefit as a business expense. This is an indirect way to write off employee meals. Alternatively, you may want to opt for subsidized meals. In this case, your employee pays a small fee to cover the cost of the food and preparing it. The fee covers your expenses so you don’t have to worry about a write-off, but your employee also doesn’t have to report that amount as a taxable benefit. Well-fed employees tend to be happy and productive, and on-site meals can be a great way to keep your construction crew motivated. In some cases, you can write off the entire cost of the food that you provide, but the rules vary.

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