9.3 In-house expense payment fringe benefits
An in-house expense payment fringe benefit arises where the expenditure you reimburse or pay for was incurred by the employee (or family member) in purchasing goods or services that you (or an associate) sell to customers or clients in the ordinary course of your business. There are two types of in-house expense payment fringe benefits:
- an in-house property expense payment fringe benefit
- an in-house residual expense payment fringe benefit.
An employer, who is a manufacturer, markets her products through independent retailers.
The employees of that employer purchase those products from the retailers at full retail price, but subsequently receive a reimbursement from the employer for part of the purchase price.
The reimbursement is an in-house expense payment fringe benefit.