FBT and home phone and internet expenses guide for employers
The FBT guide for employers (available at the following link) has been updated to clarify how employers should work out the taxable value of fringe benefits relating to the payment or reimbursement of an employee’s private home phone and internet costs and the evidence needed to support the calculations.
Broadly, the guidance indicates that where the payment or reimbursement of home phone or internet costs up to $50 only limited documentation needs to be retained by the employee which should be able to explain the connection between employment and expenses incurred by the employee. The employee will need to provide a declaration to the employer detailing the percentage of business use.
On the other hand, if the expense exceeds $50 then both the employer and the employee must keep records of the actual expenses as well as the employee providing a declaration to the employer detailing the percentage of business use and the purpose of incurring the expense.
More Information • ATO: FBT - home phone and internet expenses
If you would like additional information, or to discuss how this may affect you, please contact us by phone or email.