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Re: COVID- 19 testing cost taxable?

Newbie

Views 428

Replies 1

Hi there,

 

If Employees get Covid-19 testing done, and Employer will reimburse the cost through concur(Expense reimbursement). Confirming whether if this will be taxable or not?

 

Thanks

PS

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @PS4151

 

Thank you for your question.

 

If the payment fits the criteria below the amount will be a Fringe Benefits Tax (FBT) exempt benefit.

 

FBT and providing testing for COVID-19 to employees

(New) Question: Will I need to pay FBT if I provide testing for COVID-19 to my employees prior to them entering the workplace?

Answer: No, you won’t have to pay FBT on the provision of COVID-19 testing for your employees prior to them entering the workplace, as long as the testing is carried out by a legally qualified medical practitioner or nurse and is made available generally to all employees.

The provision of this test will be exempt from FBT as it is work-related medical screening, due to the highly infectious nature of COVID-19, and that any employee is equally susceptible to contracting the virus.

If only some of your employees are provided with COVID-19 tests, the tests will still be exempt as long as you offered them to all employees.

 

I hope this helps

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @PS4151

 

Thank you for your question.

 

If the payment fits the criteria below the amount will be a Fringe Benefits Tax (FBT) exempt benefit.

 

FBT and providing testing for COVID-19 to employees

(New) Question: Will I need to pay FBT if I provide testing for COVID-19 to my employees prior to them entering the workplace?

Answer: No, you won’t have to pay FBT on the provision of COVID-19 testing for your employees prior to them entering the workplace, as long as the testing is carried out by a legally qualified medical practitioner or nurse and is made available generally to all employees.

The provision of this test will be exempt from FBT as it is work-related medical screening, due to the highly infectious nature of COVID-19, and that any employee is equally susceptible to contracting the virus.

If only some of your employees are provided with COVID-19 tests, the tests will still be exempt as long as you offered them to all employees.

 

I hope this helps