I've been buying lunch for my crew every day this year. Now my crew is me, my son ,and 1 other full time guy plus sometimes a 4th. I figure it is a nice perk to give my crew. Now after some thought and discussing this with my CPA, she tells me doing this everyday will create a IRS problem. Someone will have to claim the money spent as income. Either I claim it or the employees get a 1099 and have to claim it as income. The other option is to just increase their pay and they pay for their own lunch ,or of course just stop this practice all together. What do you do? Anyone have any knowledge of this problem?