Party or gifts for staff – It may be a lovely idea to reward your them this Christmas, but remember to check your Fringe Benefits Tax obligations
Without wanting to sound like the Grinch, when it comes to planning staff gifts and a party this Christmas there’s more to think about than what to buy and where to host the bash.
You’ll need to establish if you have to pay Fringe Benefits Tax (FBT), and may want to consider if you’ll be able to claim a tax deduction, when rewarding your employees for their year’s hard work.
When giving staff gifts, take into account:
- the amount you spend
- the type of gift – gifts such as wine or hampers are treated differently to presents like tickets to a movie or a sporting event
- who you are giving the gift to – there are different rules for employees and clients/suppliers.
For your work Christmas party you’ll need to consider:
- how much it costs
- where and when it is held – a party at work on a normal work day is treated differently to an event outside of work
- who is invited – is it just employees or are partners, clients or suppliers also invited?
For more information, please feel free to contact myself or the team.