Hey @nybizness,
You'll be providing a fringe benefit if all the following apply:
- You provide food, drink or recreation to your employees or their associates (such as their families).
- The food, drink or recreation is considered entertainment.
- The entertainment is not an exempt benefit.
In your scenario you'll need to determine if the benefit your providing is for entertainment purposes. So, if it's provided to the employees in the following circumstances then its less likely to be entertainment and will be exempt from FBT.
- it's provided so the employees can complete the working day in comfort.
- it's light food and refreshments, no alcohol
- if it's provided during work time
- if it's provided on your premise or the employees usual place of work
You may also like to read more about entertainment-related fringe benefits on our website.
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