Hi Linda
I have read your response to regarding setting up an remote accommodation allowance for an employee.
Just been confused regarding the set up:
From the Contract: employee is casual and paid $30/Hr plus the employer is giving $400 accommodation allowance then subsequently the employee will pay back the employer the rent via FBT?
Appreciate your response
Thanks
Fritz
Hi Karelfritz
More info please, is this $400 a living away from home allowance or is this $400 for the employees normal place of residence.
Hi LInda
The contract is this. Employee is paid is Casual at $35/hr plus the employee is provided with accommodation as normal place of residence value $400 per week. Location of the house is remote area. Is this a fringe benefit? What are the exact steps to set up this in reckon? Is my set up below correct?
Appreciate your advise.
Regards
Accommodation provided to an employee in a remote area may be exempt from FBT.
https://www.ato.gov.au/general/fringe-benefits-tax-(fbt)/in-detail/getting-started/fbt-for-small-business/?page=20#:~:text=a%20fringe%20benefit.-,Housing,house%2C%20flat%20or%20home%20unit
If the accommodation is inaccessible or sparsely populated and is not located close to a built up area such as a town or city it is considered to be in a remote area.
20.1 What is an exempt benefit?
A number of benefits are exempt from FBT. Although these are popularly called 'exempt fringe benefits', they are referred to in the FBT legislation as 'exempt benefits' - in fact, by definition, an exempt benefit can't be a fringe benefit.
Exempt benefits are not only exempt from FBT, they are also (with one exception) exempt from income tax in the hands of the employee to whom they are provided. The exception relates to car expense payments, which is explained in section 20.2 .
https://www.ato.gov.au/law/view/document?DocID=SAV/FBTGEMP/00021&PiT=99991231235958/
I would set up a new allowance called "Rent - remote area", and make it free from PAYG tax, if it is actually in remote area, and add it to his pay each week. Or you could just pay the rent direct to the agent, then you know it isn't spent by employee. Will you be paying the utilities as well?
Hello ABS
Thank you for your helpful advise.
On the other hand.
Can you please advise how to set up a full time employee in
reckon hosted.
An employee has an annualised salary contract at 70k computed
including the annual leave loading and first aid allowance with normal 38 hours
a week.
Do I need to get the hourly rate so i can also track the annual
leave and sl?
Say 70,0000/52/38 hours? $35.4251/hr
Appreciate you help.
FritzHi Everyone
May need a little more info, do you want to email me Kim@kwikbooks.com.au and I will give you my phone number to call if you prefer.
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