Regardless of whether you provide or not you provide fringe benefits to your employees, FBT season is approaching, and we’re ready to assist you with your tax return once again.
There are various types of fringe benefits:
You pay FBT on certain benefits provided to your employees or employees’ families. FBT will apply even if the benefits are provided by a third party through an arrangement with the employer.
It is your responsibility to pay FBT on certain benefits provided to your employees and their family, regardless of whether the benefits are provided by a third party.
Employers must self-assess their FBT liability for the FBT year – from 1 April to 31 March. It is calculated separately from income tax, based on the taxable value of the benefit provided.
Usually, employers can claim a tax deduction for the cost of providing fringe benefits and for the FBT paid. Employers will generally also be able to claim GST credits for the items they provided as fringe benefits.
As an employer, you can reduce your FBT liability by providing income-tax deductible benefits. You may also consider an agreement in which the employee contributes to the cost of the fringe benefit. Finally, providing a cash bonus can also help reduce your FBT liability.
Let us assist with your FBT liability and remove the stress and hassle associated with it from you. We’re professional advisers who can address your tax concerns.