Meal Allowance – Policy & Consent Builder
S-Corp & LLC with S Election | De Minimis Fringe Benefit under IRC §132(e)
This tab generates the Meal Allowance Policy document, signed by the President. Complete company information and benefit terms below. This information will carry forward to Tab 2.
Company Information
Benefit Terms
The policy provides a cash meal allowance as a de minimis fringe benefit under IRC §132(e). Set the dollar amount per qualifying day and the hours threshold that defines a qualifying day.
Under IRC §132(e), de minimis fringe benefits — those so small in value that accounting for them is unreasonable — are excluded from an employee's gross income. A cash meal allowance paid to officers who work extended hours qualifies when the amount per day is modest and the policy is consistently applied. The IRS has not defined a specific dollar threshold, but amounts in the $50–$75 range per day are generally treated as de minimis. The benefit is also excludable as a working condition fringe under IRC §132(d) to the extent the employee could deduct the expense if they paid it themselves.
Enter amount — $ will be added automatically
Enter number of hours — "hours" will be added automatically
This is the unanimous written consent by which the shareholders/members adopt the Meal Allowance Policy. Complete this once when the policy is first established.
Consent Details
Usually same as policy effective date
Directors / Members (Signatories)
For an S-Corporation, signatories are the Directors. For an LLC with S Election, signatories are the Members.
The authority to adopt a company policy rests with the governing body. For a corporation, that is the Board of Directors. For an LLC, it is the Members (or Managers if manager-managed). Using the correct title on the consent ensures it reflects the proper governance authority under the applicable state statute.