As a church some of our employees get fringe benefits. They then claim these by submitting expenses. I have been told that at the end of the wages year that their balance must be 0 or the balance is paid to them as wages. I have not heard this before. Is this the case and can you give me a link to explain this please if so.
Hello @RachelKemp
It sounds like your church is offering salary packing benefits to some employees. They are also including potential FBT costs (to be paid by the church) in the in the salary package calculation. The reason many churches do this is to ensure they are no worse-off based on the employee's decision to take their payment in a different form. I'd suggest that is what your church is doing and they are running a FBT expenses account for each staff member who has claimed salary packaging.
You'll need to dig a bit deeper with the salary packing organisation or external accountants who have set this system up, to learn how it works. Not all church employees will be eligible to receive exempt fringe benefits. So the church may incur FBT costs for some employees as a result.
Here is a link to information about FBT concessions for religious institutions which will explain employee eligibility for exempt benefits.
Hello @RachelKemp
It sounds like your church is offering salary packing benefits to some employees. They are also including potential FBT costs (to be paid by the church) in the in the salary package calculation. The reason many churches do this is to ensure they are no worse-off based on the employee's decision to take their payment in a different form. I'd suggest that is what your church is doing and they are running a FBT expenses account for each staff member who has claimed salary packaging.
You'll need to dig a bit deeper with the salary packing organisation or external accountants who have set this system up, to learn how it works. Not all church employees will be eligible to receive exempt fringe benefits. So the church may incur FBT costs for some employees as a result.
Here is a link to information about FBT concessions for religious institutions which will explain employee eligibility for exempt benefits.
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