Where do you expense a Company Holiday party to? Allocation or G&A? Please provide logical reasoning behind your choice.
Accounting Treatment For Office Parties
Answers
T&E. Since it is entertainment.
what department?
If it is a company party, that it is a company expense. If you allocate rent, then you can allocate the same way. It is totally arbitrary how you do it, but it is entertainment and only 50% deductible on taxes.
3
Company parties are 100%
I stand correctly, the key word is a) all employees, b) families are permitted, c) it's not too "lavish" and d) no customers, vendors are invited.
I have yet to be at a company party that hasn't invited key advisors, like the corporate counsel, outside
I agree with Randy. We have two accounts - 50% deductible meals and 100% deductible meals - to track these AND make it easier on our auditors. Of course, they take a look at the items we are claiming in 100% deductible but so far they are happy with our decisions and documentation.
I agree with Wayne, it's entertainment. However, personally I prefer to keep track of typical T&E (related to sales and therefore to customers) separately from employee-related entertainment, which I keep as an
Its a corporate expenses and charging per department would not be feasible. Employees attending the holiday party will vary per department and for some department the expenses will be more and for some department expenses will be less.
can affect the budgetary allocation for that department
How about the opening party of a company? Customers and suppliers are invited to this event, and the business's employees will not be allowed to join. Could you give me some advice about accounting treatment and tax deduction for this event?
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