Use Tax on Employee Meals
Employers are required to pay Use Tax on the cost of food used to prepare an employee's meal. The tax should be calculated at 5.5%, not the 8% meals tax rate. It should be based on the cost of the food only, not labor or overhead.
Example: Using a food cost of $1.00 per meal per employee, the employer would declare $0.06 tax per employee per day. If a restaurant employs, on average, 20 people per day, this would equal a Use Tax of $1.20 per day or approximately $36.00 per month.
The tax should be paid to the state monthly and sent with the sales tax return on the 15th of each month.