Discounts provided to employees for food by a restaurant owner are not taxable if the discounts do not exceed the gross profit percentage of the business.

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According to the IRS, employee discounts for food provided by a restaurant owner are not taxable if the discounts do not exceed the gross profit percentage of the business. This is known as the "de minimis" fringe benefit rule. If the discounts exceed the gross profit percentage, the excess amount is considered taxable income for the employee.

Discounts Provided to Employees for Food by a Restaurant Owner