Do you treat your employees to benefits including; cars available for private and free use, subsidized or discounted goods or services? If these benefits are enjoyed as part of their employment, you, as an employer, are liable for Fringe Benefit Tax (FBT).
Employers pay tax on benefits provided to employees or shareholder-employees, even if the benefits are provided through another person/entities. Employers also pay FBT if the benefits are provided to or enjoyed by associates of the employees or shareholder employees.
Examples of Fringe Benefit Taxes
- work vehicles available for personal use
- subsidies on gym memberships or insurance
- discounted goods and services
Exemptions to Fringe Benefit Tax
- Fringe benefit tax for charities- find out more
- Employer provided motor vehicles for private use- find out more
For questions about filing you FBT and if you are liable to it, talk to you Walker Wayland Accountant.