Entertaining your employees?

With summer just around the corner, you may be planning a party or a day on the green with your employees.

Before you fire up the BBQ, make sure you consider the fringe benefits tax (FBT) implications of your celebration.

These will depend on:

• the amount you spend on each employee
• when and where your party is held
• who attends – is it just employees, or are partners, clients or suppliers also invited?
• the value and type of gifts you provide.

Don't forget to keep all records relating to the entertainment-related fringe benefits you provide, including how you worked out the taxable value of benefits.

Remember, registered tax agents can help you with your tax.