Articles

Do Your Employees Receive Perks?

November 27th, 2013

The topic of employee benefits & FBT came up the other day & then this information arrived in my inbox today (coincidence or conspiracy?)

If you give your employees certain benefits or perks you may need to pay fringe benefit tax (FBT).

FBT is simply a tax paid by employers on benefits that employees receive and enjoy as a result of their employment. This includes benefits given to employees or other people associated with your employees including some family members.

Some examples of fringe benefits

If you pay for your employees’ car parking, you will need to pay FBT on the value. However, if the car park is on your own or permanently leased premises, you are not liable for FBT.

Other common fringe benefits are:

  • The private use of a motor vehicle.
  • Low interest loans.
  • Free or discounted goods and services.
  • Subsidised transport.

I won’t go into any more detail as that’s what your accountant is for, but link below from business.govt.nz has the above detail in full.

Click this link to read the original article

Click this link to read some more information from the IRD on FBT

Compliance is a key management & governance function so take the time to have a read & think about what is happening in your business in this & other compliance areas.

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