Hi there,
If an employee has developed chronic pain in wrist due to work and may need to have injections in every 4-6 months. My question is:
If the employer (Company) pays for the medical expense, is it tax deductible and will this be subject to FBT?
Thanks,
Polly
Hi @Pollykeung
An employer may be able to claim a tax deduction for medical expenses where it's incurred in connection with it's employee’s employment. Benefits provided for work-related injury are FBT exempt benefits.
To qualify for exemption, such benefits (for example, the payment of hospital or medical costs or associated ambulance, travel and accommodation costs) must be provided for 'compensable work-related trauma' suffered by an employee.
Compensable work-related trauma is an injury or disease related to employment, for which the employee is entitled to receive compensation under a workers' compensation law. If the employee's employment is not covered by a workers' compensation law, the provision of the benefit must be reasonable having regard to the facts of the case.
Does that help?
Hi @Pollykeung
We'll ask our technical team for advice. If we need more info from you we'll let you know.
Hi @Pollykeung
An employer may be able to claim a tax deduction for medical expenses where it's incurred in connection with it's employee’s employment. Benefits provided for work-related injury are FBT exempt benefits.
To qualify for exemption, such benefits (for example, the payment of hospital or medical costs or associated ambulance, travel and accommodation costs) must be provided for 'compensable work-related trauma' suffered by an employee.
Compensable work-related trauma is an injury or disease related to employment, for which the employee is entitled to receive compensation under a workers' compensation law. If the employee's employment is not covered by a workers' compensation law, the provision of the benefit must be reasonable having regard to the facts of the case.
Does that help?
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