N.J. Admin. Code § 18:24-12.6
Current through Register Vol. 56, No. 11, June 3, 2024
Section 18:24-12.6 - Subsidized employee cafeterias and food service operations(a) An employer, who by contract or otherwise engages a caterer or food service contractor to provide food and drink or service to employees at the employer's expense, is the purchaser of food and drink subject to the sales tax. Example: Employer E provides food and drink to his employees without charge. Employer E contracts with Food Service Contractor F to prepare and serve the food and drink for a fee to be paid by Employer E. The fee paid by Employer E is subject to tax as a receipt from the sale of food and drink.
(b) Sales of food, drink, or service to employees through a cafeteria on an employer's premises are subject to the sales tax, except as provided in 18:24-14.3(a)6. Example: Employer E maintains a cafeteria or restaurant on his premises for the purpose of selling food and drink to his employees. The sale of the food and drink to the employees is taxable.
(d) If a subsidy based on individual sales of food and drink is paid by an employer in addition to a specified amount paid by the employees, both amounts are taxed as the receipt from the sale of food and drink. Example: Employer E will pay $ 0.50 to a caterer for each sale of food and drink to Employer E's employees. Employer E's employees will pay any amount due which exceeds the $ 0.50 paid by Employer E. Both the amount paid by the employee and the $ 0.50 paid by Employer E are taxable receipts from the sale of food and drink.
(e) The caterer or food service contractor is a seller required to collect the tax on receipts from either the employee, the employer, or both.N.J. Admin. Code § 18:24-12.6
Amended by 48 N.J.R. 824(a), effective 5/16/2016