Enquire now. No matter what group your employer falls into, you can package extra payments to your superannuation over and above your compulsory contributions. These extra contributions are made in pre-tax dollars, which helps to reduce your taxable income. As an employer, FBT can sometimes be a big headache. The alternative is, you could just leave it all to us, the experts, so you can get back to business.
At Toyota Fleet Management we handle Salary Packaging for more than employers across Australia, taking care of the details and making the process easy from start to finish. Search CommBank. Start typing…. Popular searches. Quick guide to fringe benefits tax FBT Fringe benefits can help you both enjoy some job perks, and, depending on your personal circumstances, reduce your taxable income. What are fringe benefits? Related articles. Why do companies offer fringe benefits?
How can fringe benefits reduce my tax? A wide range of perks are classed as fringe benefits. Taxes are deducted from your paycheck and the income must be reported on your annual tax return. But other fringe benefits may be deemed nontaxable because they're deducted on a pretax basis.
Certain contributions made to a retirement plan aren't taxed until you choose to withdraw them from the plan. You may have to pay for reimbursements such as tuition and memberships for off-site gyms. It's always a good idea to check with your human resources department or the IRS. If you see this on your paycheck, it normally indicates how much your employer paid in dollar value for fringe benefits.
Most employers will list which benefits it paid for and by how much. Payroll taxes are not considered a fringe benefit. These are deductions that employers withhold from your paycheck to pay to the government for income taxes, Social Security, and Medicare.
These taxes are based on how much you make, including any wages, salaries, and tips. Getting hired for a new job can be very exciting. But remember not to be blindsided by how much you'll get paid. While your take-home pay is a very important consideration, you should also keep in mind any other perks that your employer offers you.
Although you may not get a high salary—which may put you in a higher tax bracket—additional fringe benefits like health care, bonuses, vacation time, and a great retirement plan may actually balance it out. Bureau of Labor Statistics.
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Bonus Compensation. Other Fringe Benefits. Fringe Benefits FAQs. The Bottom Line. Find the announcement on the Beehive website external link. If you're providing special perks to your employees, like gym memberships or work vehicles for personal use, you're likely to be liable for fringe benefit tax FBT. Test your knowledge on employee allowances and fringe benefit tax. Jim has a plumbing business with three employees and two vans.
Jim uses one of the vehicles himself, and his second-in-command, Paul, takes the other home each evening and weekend. When Paul first started, Jim let him use the van for non-work purposes at the weekend. Jim decides this is costing his business too much. These are taxed via ESCT. You pay FBT on the cost of the benefit to the employee, eg the cost of the car for the portion of time it's available for personal use.
When you first start giving your employees the benefit, you need to register for FBT with Inland Revenue. You can register online or by calling Inland Revenue.
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