{"id":870,"date":"2023-11-23T01:54:46","date_gmt":"2023-11-23T01:54:46","guid":{"rendered":"https:\/\/www.agilisbooks.com.au\/?p=870"},"modified":"2023-11-23T01:54:46","modified_gmt":"2023-11-23T01:54:46","slug":"fringe-benefits-tax-and-business","status":"publish","type":"post","link":"https:\/\/agilisbooks.com.au\/?p=870","title":{"rendered":"Fringe Benefits Tax and Business"},"content":{"rendered":"<h2><span style=\"font-weight: 400; color: #99cc00;\">Do you offer your employees benefits in addition to salary and wages? If so, you may need to report FBT. Fringe benefits can help employees reduce their taxable income, but you need to take care of the admin.<\/span><\/h2>\n<p>&nbsp;<\/p>\n<p><!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-871\" src=\"https:\/\/agilisbooks.com.au\/wp-content\/uploads\/2023\/11\/FBT.png\" alt=\"\" width=\"475\" height=\"311\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">Benefits provided to employees or their associates in addition to salary or wages are known as <\/span><a href=\"https:\/\/www.ato.gov.au\/businesses-and-organisations\/hiring-and-paying-your-workers\/fringe-benefits-tax?=redirected_fbt\"><span style=\"font-weight: 400;\">fringe benefits<\/span><\/a><span style=\"font-weight: 400;\">. These benefits are paid for by the employer from pre-tax earnings, making the provision of benefits attractive to employees as it may reduce their taxable income while receiving payment in other forms.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fringe benefits tax (FBT) may apply based on the type of benefit provided.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Tax is payable because the benefits are a different form of payment by an employer instead of salary and wages. The tax is calculated on the taxable value of the benefit, which reflects the grossed-up salary the employee would have had to earn to pay for the benefits from post-tax earnings.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employers can generally claim a tax deduction for the benefits and related FBT payable.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Types of Benefits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">There are many different types of fringe benefits employers may provide to employees. These include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vehicle owned by the business provided for private use<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vehicle lease arrangements<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Car parking<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Entertainment, such as golf club membership or tickets to major events<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Expense payments, such as credit cards or health insurance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Other types include debt waiver, living away from home allowance, or property benefits.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Some benefits provided to employees don&#8217;t attract FBT. If you pay for expenses that an employee would otherwise have been able to claim as a work-related tax deduction, FBT won&#8217;t apply. For example, if you pay for employees to attend a professional development course, there won&#8217;t be any FBT liability on this benefit.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>FBT Administration<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The fringe benefits tax year runs from 1 April to 31 March. You must then include the reportable amount for each employee on their Single Touch Payroll finalisation by 14 July, so it flows through to their annual income statement.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As with all business transactions, keeping accurate records is essential to determining whether FBT applies or not and how much needs to be included on the employee&#8217;s income statement, if any.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>How can Agilis Books help?\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If you are interested in seeing how fringe benefits might apply to your business, <\/span><a href=\"https:\/\/agilisbooks.com.au\/?page_id=13\"><span style=\"font-weight: 400;\">contact Agilis Books<\/span><\/a><span style=\"font-weight: 400;\"> about FBT registration and administration.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We can advise on the types of benefits available, how much tax is payable or how to reduce the FBT liability. We&#8217;ll also get your bookkeeping software set up to make record keeping easy.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>This blog was originally published by BOMA.\u00a0<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you offer your employees benefits in addition to salary and wages? If so, you may need to report FBT. Fringe benefits can help employees reduce their taxable income, but you need to take care of the admin. &nbsp;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[7,5,11],"tags":[],"class_list":["post-870","post","type-post","status-publish","format-standard","hentry","category-bookkeeping","category-financial","category-tax"],"_links":{"self":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts\/870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=870"}],"version-history":[{"count":4,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts\/870\/revisions"}],"predecessor-version":[{"id":875,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=\/wp\/v2\/posts\/870\/revisions\/875"}],"wp:attachment":[{"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/agilisbooks.com.au\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}