When planning your practice's Christmas functions and gifts, don’t forget to consider the tax consequences to save you money!
Here’s a quick reference guide to assist in all your planning needs.
Please note the above only applies if you are using the actual method, as opposed to the 50/50 method, to calculate FBT.
*Gifts to employees are tax deductible with the exception of items of a recreational nature such as tickets to sporting events or concerts.
If gifting cash bonuses you should always consider the tax consequences.
Bonuses are regarded as ordinary times earnings and must be included when calculating the 9.5% super.
Not factoring in the appropriate withholding tax may result in a tax bill to your employee come year end.
The responsibility rests with the employer to ensure PAYG, FBT and superannuation are appropriately remitted.
Want to find out more? Contact our team today!
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