1800 - Resolution - Guidelines and Procedures for Meal ReimbursementRESOLUTION NO. 1800
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON
ESTABLISHING GUIDELINES AND PROCEDURES TO COMPLY WITH
THE INTERNAL REVENUE SERVICE REGULATIONS GOVERNING
THE TAXABLE STATUS OF MEAL REIMBURSEMENT
WHEREAS, the Port Orchard City Council recognizes the Internal Revenue Service (IRS)
has regulations which designates the taxable status of a meal allowance or meal reimbursement, and
WHEREAS, it is the intent of the City Council to comply with Internal Revenue Service
regulations on the taxable status of reasonable meal allowances and/or meal reimbursement provided to
city personnel, and
WHEREAS, the Port Orchard City Council acknowledges its responsibility to provide
guidelines and clarification of the City's implementation of Internal Revenue Service rules for taxable
status of reasonable meal allowances and/or meal reimbursements, now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY
RESOLVES AS FOLLOWS:
MEAL REIMBERSEMENT POLICY: It is the intent of the City to comply with Internal
Revenue Service rules regulating the tax status of reasonable meal reimbursements and/or meal allowances.
The Internal Revenue Service regulations provide tax exemptions for the cost of meals that
have a direct or associated business connection. The cost of a meal not having a direct or associated
business connection is taxable to the individual benefiting from the meal. The cost of a meal not having a
direct or associated business connection will be subject to applicable federal and state payroll taxes.
The following are examples of TAXABLE meal allowance and/or meal reimbursement. This
list is not intended to be inclusive and limited. Other type of meal allowances that do not have a direct or
associated business connection will be subject to applicable payroll taxes.
1. Twelve hour shift meal allowances.
2. The cost of meals if the distance for the business trip does not require an overnight
stay or long enough to require you to stop to get substantial sleep or rest.
3. The cost of a meal if the person is away from their duty station and on a "lunch
break" and/or on their own time.
The following are examples of NON-TAXABLE (EXEMPT) meal allowance and/or meal
reimbursement. This list is not intended to be inclusive and limited. Other types of business meal allowances
and/or meal reimbursements will be exempt from applicable payroll taxes.
1. Council retreats or meetings where participants are required to stay and continue
the meeting through the meal period.
2. Meetings or training sessions which the cost of the meeting or training session
includes the meal. (e g. Council Coalition, Puget Sound Regional Council,
professional associations meetings)
PASSED by the City Council of the City of Pori Orchar APPRIVED by the Mayor and
attested by the Clerk in authentication of such passage this 26th day o Ja uary 1998.
LESLIE J. WEATHERiLL, MAYOR
ATTEST;.
Patricia Parks, City Clerk