Do you provide a benefit to your employees in a form other than salary or wages? Benefits can be a great way to entice, retain, motivate and reward your employees, but it’s important to check whether those perks come with any tax implications.
Benefits and ‘added extras’ used to supplement a wage or salary commonly include the provision of:
- a vehicle you own or lease for private use
- holiday accommodation
- concert tickets
- club memberships
- private health insurance
If you’re providing any of these or similar perks to your employees, then you need to work out if you have a fringe benefits tax (FBT) obligation, or if the benefits you provide are exempt (such as mobile phones, laptops and other tools of trade, as well as minor benefits with a value of less than $300). Check out these handy ATO videos that will help you understand what a fringe benefit is, and how to keep your fringe benefits tax obligations under control. Watch:
Cars and fringe benefits
Lifestyle assets fringe benefits
Fringe Benefits and Entertainment
If you’re unsure of your obligations with regard to fringe benefits tax, feel free to send us an email or call us on 9887 8751 and we’ll help clarify it for you.