Date posted: Wednesday, February 19, 2014
As an employer, you are required to pay a tax on non-cash (or fringe) benefits provided to employees. These benefits include services and privileges allowed to employees as well as physical goods.
What is classified as a ‘fringe benefit’?
To put it simply, benefits provided to an employee because they are an employee are considered to be a ‘fringe benefit’. This includes giving employees:
- Company cars for personal use
- A cheap or discounted loan
- Private health insurance
- Entertainment in the form of meals or recreational activities
What is not classified as a ‘fringe benefit’?
Employers are not required to pay FBT on the following goods and services:
- Employee relocation expenses
- Superannuation
- Work related items such as protective clothing and tools
How does this impact me?
Whether you’re an employee or employer the Fringe Benefits Tax impacts you. While employers pay the FBT, fringe benefits must also be reported on an employee’s PAYG payment summary and tax return.
Still have questions? You can find out more by giving us a call, sending us an email or booking in for a visit. We specialise in servicing individuals and businesses in the South Eastern Suburbs within the Cardinia Shire.
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