What You Ought to Know About Fringe Benefits Tax?

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<h1>What You Ought to Know About Fringe Benefits Tax?</h1><strong> Author: <a href='http://www.articleseen.com/profile_Lester Ong.aspx'>Lester Ong</a></strong><br /><p>Wondering what is Fringe Benefits Tax? Our tax lawyer in Perth explains you about the fringe benefits and the tax associated with it. Fringe benefits are non-cash benefits provided to the employee throughout their employment. It includes motor vehicles, paying personal bills, providing entertainment, and more. These must be a part of the employees’ remuneration and are taxable. As an employer, you have an obligation to file an FBT return with the ATO, if you are providing fringe benefits to your employees and pay any resulting FBT. You can get in touch with your tax law firm in Perth to get a helping hand in this. Basic Mechanics of Fringe Benefits Tax - You can claim for a tax deduction, and a credit for any GST paid if the expense is related to FBT. - FBT is tax-deductible when paid. The Most Common Fringe Tax Benefits Entertainment According to the taxation lawyer in Perth, entertainment is the primary thing that employers provide to their team, which is great from a morale perspective but painful from a tax perspective. While calculating fringe tax benefits, they often lump all entertainment into a single expense account – both clients and staff – so there are two methods of calculating how much FBT to pay on entertainment. Motor Vehicles If the employees are allowed to use company vehicles for their personal use, then it will be subject to FBT. Expense Payments FBT is applicable if the company is paying for the costs on behalf of the employee. This includes daycare fees, health insurance packages, and more. How to Get Out of FBT? The leading tax law firm in Perth suggests making the expense non-deductible if the expense is minor and ‘unreasonable to treat as a fringe benefit’ to avoid any FBT obligations. The minor benefit includes any expense that is less than $300 per person per occasion. Employee benefits that happen only a few times a year can be categorised as unreasonable to treat as a fringe benefit. Get in touch with your tax law firm in Perth now to get more details on FBT and how to get out of it. </p><strong>About the Author:</strong><br />The author of this article is associated with a <a rel="nofollow" href="https://www.munrodoig.com.au/" target="_blank">tax law firm in Perth</a> and has over a decade of experience in practising tax law. In this article, he discusses about Fringe Benefits Tax. Visit <a rel="nofollow" href="https://www.munrodoig.com.au/" target="_blank">https://www.munrodoig.com.au/</a> for more information. <p> Article Source: <a href='http://www.articleseen.com/Article_What-You-Ought-to-Know-About-Fringe-Benefits-Tax_325886.aspx'> http://www.articleseen.com/Article_What You Ought to Know About Fringe Benefits Tax?_325886.aspx</a></p>

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