Even though Fringe Benefits Tax (FBT) is designed to capture benefits enjoyed by an employee, it is levied on the employer. Unless your employment agreement allows for any FBT that becomes payable to be recouped from the employee, the employer will have no recourse for reimbursement. So, why should an employer lodge an FBT
Many employers are unknowingly falling foul of the FBT regime through an incorrect interpretation of the minor and infrequent exemption allowed for benefits that cost less than $300. The most prevalent area where employers find themselves in trouble when applying the minor and infrequent exemption is in relation to the provision of ‘Meal Entertainment’.
Are you providing COVID-19 related benefits to employees? Business owners providing benefits in addition to salary or wages because of COVID-19 need to check if fringe benefits tax could apply. Although you may be providing various benefits to create a safe workplace and support employees, you may be inadvertently liable for fringe benefits tax.