Which of the Following Is True About the Employee Tax

question 20

Multiple Choice

Which of the following is true about the employee tax treatment of employer-provided snacks and meals?

• A)Holiday parties and meals provided at special gatherings are always taxable.
• B)All employer-provided snacks and meals are taxable.
• C)Snacks and meals provided on a regular basis are not taxable.
• D)Occasionally provided snacks and meals are not taxable.

---

Definitions:

Liable

Being legally responsible for something, typically a debt or a legal obligation.

Constructive Notice

Notice of agency termination that is usually given by publishing an announcement in a newspaper.

Agency Relationship

An agency relationship exists when one party, the agent, is authorized to act on behalf of another, the principal, in business transactions with third parties.

Terminated

Terminated means bringing something to an end or conclusion, often referring to the cessation of employment or the conclusion of agreements.