up is employën as an accountant. The employment contract provides as follows: ml
ID: 2403739 • Letter: U
Question
up is employën as an accountant. The employment contract provides as follows: ml . Salary: $45,000. . Laptop computer provided: $3,600. . Professional development allowance: $750. (Addemup paid $1,060 to attend computing skills courses run through Lowfees University.) . Car: the employer pays the costs of leasing, licence, insurance and scheduled services, which amounted to $520 per month. The running costs of $100 per month are paid by Addemup. The car was used to travel 15,000 km for the FBT year, of which 2.500 were busines related. The value of the car when leased last year was $25,000. . All expenses include GST where applicable. Required: l. Calculate the fringe benefits tax payable by Addemup's employer for the year. Assume that monthly car payments are constant and that all other FBT transactions occurred during the FBT year ended 30 April. 2. Calculate Addemup's taxable income and Reportable Fringe Benefit for the year ended 30 June.Explanation / Answer
1)
Calculations of fringe benefit tax for the year ended 30th April:
a)Cost of computer Laptop provided $3600
b)Professional development cost incurred by employer $750
c)Cost of car running expence provided by employer $6240
Total fringe Benefit Given(a+b+c) $10590 and taxable at the rate of 10%, =10590*10%=1059
Note:salary not forms part of fringe benefits
2)
Taxable Income in the hands of Addemup is Only Salary Income which is $45000
Reportable Fringe Benefit is $10590
Note: All fringe benefit which is taxable in the hand of employer is exempt in the hands of Addemup as per Regulations.
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