My company provides an employee program to ALL employees that give discounts at participating retailers or cashback. The program is available to use or not use as required on a personal basis. Employees use their own funds to purchase vouchers and get discounts (eg. 4% off at Woolworths when you purchase a gift card via the program or cashback from buying from David Jones). The company pays a large sum to offer this program to employees.
Is this type of program subject to FBT? If it is, how to calculate FBT values for employees. We got the report only showing the total saving for the whole company which means we can calculate the FBT value for the company. But we don't have detailed spending for each employee and the program supplier cannot provide it. We've also checked the terms with the program supplier - they only have the term regarding 'reward and recognition' and we don't provide this service with employees. So no special agreement regarding the program.
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