A Fringe Benefit is a payment to an employee. However it is in a different form to salary and wages. For example, a fringe benefit may be provided when an employer:
- Allows an employee to use a work car for private purposes
- Gives an employee a cheap loan
- Pays an employees gym membership
- Provides entertainment by way of free tickets to concerts
- Reimburses an expense incurred by an employee, such as school fees
- Gives benefits under a salary sacrifice arrangement with an employee.
As part of our service to our clients Satellite Accounting works with business owners to identify any Fringe Benefits and ensure these are dealt with in the most tax effective manner for our clients.