A business meal, also called a working meal, is a meal at which faculty, staff, students and/or guests are present for the purpose of conducting university business. A business meal may occur while traveling, but is differentiated from a travel meal. A business meal must have a business purpose which is connected to the university mission and be deemed reasonable and necessary under university policy.
In general, meal expenses for persons not directly connected to the business purpose of the meal are not reimbursable (e.g., spouses, other family members). It is the responsibility of the individual incurring the business meal and those involved in the preparation and approval of the reimbursement request or financial transaction to exercise stewardship of university funds and to adhere to university policies. The university outlines its core responsibility, guiding principles and IRS regulations with regard to business and travel expenses in Administrative Guide Memo 5.4.2.
The Stanford Purchasing Card (PCard) is the preferred payment method for local business meals. Alternatively, personal funds may be used and a request for reimbursement submitted. The same policies must be followed regardless of payment method.
Gift cards may be provided for the purposes of purchasing a business meal and should use the appropriate expenditure type to avoid tax implications to the recipient.
When a business meal occurs while traveling, the Stanford Travel Card (TCard) is the preferred payment method for travel costs that will not be reimbursed through the per diem method. The business meal must be deducted from that day’s Travel Meal reimbursement request. For more information on reimbursement methods, see the Topic Overview: Business and Travel Expenses page.
On (at least) an annual basis, the Business Expense team reviews actual meal costs, the Consumer Price Index (CPI), and campus feedback to appropriately adjust meal maximums.
The maximums cover the actual per person cost for the meal (inclusive of food, alcohol, sales tax, and tip). Receptions or refreshment events do not involve a “meal” but instead include drinks, appetizers, or refreshments that may or may not occur with a meal.
Maximums do not include the following charges, which should be removed when calculating the per person cost of the meal:
- Non-meal costs (such as banquet room or furniture rentals, service labor, or fees).
- Living Wage (Cost of Living) fees. These fees are automatically added to dining bills by some restaurants to compensate for high labor costs, ongoing labor shortages and increasing food costs. They may be listed on a receipt as Wellness fees, Dining-in fees, or Health care fees.
Schools and units are solely responsible for approving any exception to these maximums.
Business Meal Maximums Effective October 14, 2024
| Business Meal Description (see expenditure types) | Per Person Maximum |
|---|---|
| Working Meal |
|
| Employee Morale/Event |
|
| Recruitment | |
| Fundraising | |
| Lobbying |
Receipt and documentation requirements are outlined in Business and Travel Expenses.
