Legal Obligations for Employers Offering $3,250 Fringe Benefits
School
Monarch Institute**We aren't endorsed by this school
Course
ACCOUNTING AND BOOKKEPING FNS40222
Subject
Accounting
Date
Dec 10, 2024
Pages
1
Uploaded by GrandMask12080
Q 1.2: List four legal requirements of an employer if they pay a Fringe Benefit of$3,250 to an employee (NOTE: this question does not concern payroll obligations)1.The employer must be registered with the ABR for both PAYG Withholding and Fringe Benefit Tax (FBT).2.The fringe benefit provided is valued at $3,250, so the employer needs to include this in their FBT return, which they need to lodge and pay the tax of at the applicable rate for the financial year by 21 May. The FBT year runs from 1 April to 31 March of the following year.3.Employer’s must report the gross total of the benefits through the Single Touch Payroll (STP) system for the relevant income year.4.PAYG Withholding is to be deducted from an employee’s salary and paid to the ATO through either BAS or IAS lodgements, along with any applicable FBT instalments.
