An eye-catching compensation package is what employees look for in a potential new job. Working is more than making money, it is about getting paid via health insurance coverage, paid time off, and company cars, just to name a few. This extra compensation is considered a fringe benefit. As an employer, it’s a plus to have a few fringe benefits available for all employees. There is a long list of possible fringe benefits that are taxable too. All of which makes for long, complicated tax forms every year. Fringe benefits tax software is a great way to make sure taxes are done properly, with minimal effort.
Learn more about fringe benefits tax and how to make your life a lot less stressful.
Fringe Benefits Tax Information
If you are an employer, you are required to tax any taxable fringe benefits you offer your employees. Fringe benefits tax (FBT) is taxed separately from income tax, which means there’s just another form that needs to be filled out every year. It has to be done right, though, or the risk for compliance increases. Complying with fringe benefits tax rules has become stressful and time-consuming.
All non-taxable fringe benefits the employees received in the last year won’t need to be reported to the ATO. There is a rather long list of tax-free employee fringe benefits, and they include:
- Health, disability, and accident insurance
- Health Savings Account
- Stock invested
- Educational assistance
- An employee discount
The list continues, and figuring out what you are responsible for taxing can get so complex that some things may be accidentally left out or a number is miswritten. That is when a fringe benefits tax software can make life a little less stressful. FBT software helps organize and simplify the taxing process as much as possible. It’s ideal for any sized employer and is trusted by some of the largest businesses in Australia.
Life Is Easier With Fringe Benefits Tax Software
What is fringe benefits tax software? FBT software truly takes the guesswork out of taxes completely. Most software includes an easy-to-use design for centralised and decentralised returns. The data entered is uploaded efficiently and calculates in real-time. Many companies even offer optimised salary packaging, which is a standard report that lays out all excess post-tax contributions by the employees. This isn’t all FBT software has to offer either.
There are numerous different fringe benefits that are taxable, and these are:
- Working condition
- Excessive mileage
- Moving expenses
- Clothing that is suitable for streetwear
- Prizes and awards
An FBT software is the double checker, so you don’t have to be. So long as the information is uploaded into the data upload process correctly, the software will let you know sooner what needs changed, and how to get the most out of your taxes.
There is no need to put yourself at risk of compliance with FBT software. This service will get your back to work sooner. Not only because of its simplified use and convenient data calculating but because most FBT software offers e-filing for lodgement with the Australian Tax Office (ATO).
No matter how many employees are on your payroll, there aren’t many reasons why a fringe benefits tax software can’t enhance your work life. More importantly, many companies offer a comparison of your reports history to show where you’ve come, and potentially where you’re going. Fringe Benefits are a great tactic for getting new employees, but that doesn’t mean taxes have to be a burden. They won’t be with FBT software.