Hi Dear,
My client is a construction company. One of contractor was injured during work. Company spent $500 for his medical treatment. Is this $500 deductible for tax. If it is a employee injured instead of contractor, dose it make any difference?
Thank you very much for your assistance.
Danielle
Hi @Danielle19,
Yes, that $500 spent on the contractor’s medical treatment is an allowable deduction of the company because it is incurred in gaining or producing the assessable income of the company. It will still be an allowable deduction of the company, if that was an employee instead of a contractor.
Hi @Danielle19
We're checking this for you and will let you know
Hi @Danielle19,
Yes, that $500 spent on the contractor’s medical treatment is an allowable deduction of the company because it is incurred in gaining or producing the assessable income of the company. It will still be an allowable deduction of the company, if that was an employee instead of a contractor.
Thank you very much for your time.
Danielle
Hi Kylie,
What if it is due to long time working as construction worker (not due to accident), my client's joint on the shoulder has been damaged. If the employer paid for the medical cost, Is the medical cost on his shoulder tax deductible in employer's tax return? If so, what kind of evidence employer need to obtain in order to get the deduction. eg medical explanation from doctors?
Thank you very much!
Danielle
Hi @Danielle19
If the employee suffered injury due to work and the employer convered the medical costs then it's an allowable deduction for them. This is because the medical expenses are incurred in the process of gaining or producing assessable income for the business.
Examples of records can include, receips of costs and a report that the injury is work related etc.
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