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D – Debt waiver

Last updated 26 March 2015

If an employee is in debt to you and you release the employee from the obligation to repay the debt, the unpaid amount is a debt waiver fringe benefit. Show the amount of this kind of benefit at item D.

A debt owed by an employee that you write off as a genuine bad debt is not a debt waiver fringe benefit.

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Example: Complete debt waiver fringe benefits

An employer waives a $500 debt that an employee owed from a previous year.

The employer shows this at item 23 as follows:

End of example