If an employer provides meals and snacks, what is the maximum deduction allowed from employee wages?

The correct deduction for meals and snacks provided by an employer is generally limited to 50% of the cost if the employer does not meet specific criteria for full deduction. This means that if an employer provides meals and snacks to employees, they can only deduct half of the amount spent on those items from the employees' wages.

If the employer meets certain requirements, such as those related to ensuring that the meals are provided for the convenience of the employer or are offered in a cafeteria-style service, the deductibility might change, but the general allowance remains at 50%. Therefore, the maximum deduction for the cost of meals and snacks from employee wages typically aligns with this percentage cap.

In this scenario, the answer correctly reflects the standard deduction allowed under IRS guidelines for meals provided to employees, emphasizing the importance of understanding the nuances related to employee benefits and taxation.