Forum Discussion

Crompton's avatar
Crompton
Experienced Cover User
2 years ago

new employee benefits

Hi

 

Need to understand this new feature on your program.

 

If these are benefits that you are providing your staff, are these going to be subject to FBT?  from what I read on your website, it really sounds like it is going to

  • Hi Crompton 

     

    Thanks for your post and Welcome to the Community Forum.

     

    A fringe benefit (FBT) is something offered to an employee by their employer on top of their salary. It can be used to incentives and reward employees without increasing wages.

     

    It must be non-cash incentives paid on top of the salary. Even if the benefit is provided by a third party employers must pay FBT, and Employees can exclude fringe benefits from their taxable income. 

     

    There are employee benefits that are subject to the Fringe Benefit Tax (FBT). These are, Holiday and vacation expenses; Educational assistance to the employee or his dependents; and, life or health insurance and other non-life insurance premiums or similar amounts in excess of what the law allows. 
    And also Fringe benefits furnished to managerial and supervisory-level employees by the employer. And this benefits subject to FBT are no longer included in the employee's taxable income. 

     

    You can check on this Help Article: Reportable fringe benefit 

     

    Please feel free to post again. And Let me know if you require any further assistance with this. I'm happy to assist you.

     

    If my response has answered your inquiry please click "Accept as Solution" to assist other users find this information.

     

    Cheers, 

    Cel