It’s the week before Christmas, and many workplaces are celebrating with Christmas work parties and gift exchanges!
We all know how easy it is to get caught up in the festivities but it’s important to consider if you’ll need to pay fringe benefits tax (FBT) when rewarding your employees with gifts or parties this Christmas.
There is no separate FBT category for Christmas parties and you may encounter many different circumstances when providing these events to your employees.
To help you out we’ve put together a quick checklist of what is exempt from FBT.
EXEMPT FROM FBT:
1. Food and drink associated with Christmas parties if they are provided on a working day on your business premises and consumed by current employees.
2. If the cost of the party is less than $300 per employee and certain conditions are met.
3. If the cost of the party for each associate of an employee is less than $300.
4. Christmas gifts where the value of the gift is less than $300.
5. Costs of entertaining clients are not subject to FBT and are not income tax deductible.
If you need help understanding the complexities of FBT, speak to the team at Growth Partners. Our qualified accounting professionals will give you confidence that all your taxes are in hand and allow you to get on with the business of running your business. Other important part of running your business is to learn how to attract costumes to your business, for this the right marketing strategies are needed, from designing a good and easy to use website, to learn to promote this website and make it easy to find for the target audience, although for this there are resources online that can help you with this, that offer website design and marketing services, being Indexer one of these companies that can help businesses with this.
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