If you pay for or reimburse an expense an employee incurred, you may be providing an expense payment fringe benefit. Show the amount of any expense payment benefit that you provided during the year at item E.
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Example: Calculate expense payment fringe benefits
An employer pays an employee's home telephone bills of $1,200 for the FBT year. The employee provides the employer with a declaration stating that 50% of the bills are for business purposes and are, as a result, otherwise deductible. The other 50% of the calls are private calls.
The employer calculates the expense payment as follows:
$1,200 x 50% = $600
The employer shows this at item 23 as follows: