---
kind: "section"
citation: "20 C.F.R. § 404.1043"
title: "20"
number: "404.1043"
heading: "Facilities or privileges—meals and lodging."
url: "https://uscodex.org/cfr/20/404.1043"
---

# §404.1043. Facilities or privileges—meals and lodging.

- (a) **Excluding the value of employer provided facilities or privileges from employee gross income prior to January 1, 1985.**
  - (1) Generally, the facilities or privileges that an employer furnished an employee prior to January 1, 1985 are not wages if the facilities or privileges—
    - (i) Were of relatively small value; and
    - (ii) Were offered or furnished by the employer merely as a means of promoting the health, good will, contentment, or efficiency of the employees.
  - (2) The term facilities or privileges for the period prior to January 1, 1985 is intended to include such items as entertainment, medical services, and so-called courtesy discounts on purchases.
- (b) **Meals and lodging.** The value of the meals and lodging furnished to an employee by an employer for reasons of the employer's convenience is not wages if—
  - (1) The meals are provided at the employer's place of business; and
  - (2) The employee, in the case of lodging, is required to accept lodging on the employer's business premises as a condition of employment.

## Notes

### Amendments

[52 FR 29662, Aug. 11, 1987]

### Authority

Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230, 231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v), 405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)) and 48 U.S.C.1801.

### Source

Source: 45 FR 20075, Mar. 27, 1980, unless otherwise noted.

### Amendments

[52 FR 29662, Aug. 11, 1987]