It's Monday 17 December, we are all sitting at our desks ready to "attack" the week.
"With our passion and purpose you will profit."
As the card above suggests ... we love what we do!
BIGGER BEANS & BETTER RESULTS AWAIT
Everything we do is targeted at making your accounting easier by condensing bundles of information into simple strategies to get you ahead.
But getting ahead and reaching your financial ambitions can't be achieved by just doing your end accounts and tax returns, touching base with you frequently or getting together regularly will.
We will surprise you with what we know and what advice and ideas we can offer.
Have a listen to our team song ...
THE PACESETTER ... 17 DECEMBER 2018
NZ has the plan of being smoke free by 2025, great idea but can it happen? What about all those tourists that love to smoke?!
What are we going to do about our road carnage? The answer is this, a median strip from Kaitaia to Bluff on State Highway 1. At what cost? Who cares what it costs, it just needs to be done!
Watch that credit card over the week, buying the presents is not all about how much they cost and remember, that credit card might have to see you through over the Xmas break.
Whether you have been good, bad or ugly there's still a Xmas!
Put the jingle in your jangle and enjoy the week!
QUESTION OF THE WEEK... 17 DECEMBER 2018
Deductibility of child care expenditure
An employee travels out of town on a regular basis for business purposes. When the employee is out of town the employee needs to pay a person to care for her children.
If the employer pays the employee's childcare expenses will those payments be tax deductible and subject to FBT?
Where the employee incurs expenditure and the employer pays that expenditure or reimburses the employee for the expenditure, the payment is taxable income of the employee. The employer will need to gross up the payment and account for PAYE on it.
Where the employer incurs expenditure for the benefit of an employee, a fringe benefit will arise on which the employer may need to pay FBT.
Therefore, if the employer is reimbursing or paying the childcare expenses for the employee, it will be taxable income of the employee and the employer will need to account for PAYE. If the employer incurs the childcare expenses for the benefit of the employee an unclassified fringe benefit will arise. Whether the employer needs to account for FBT will depend on whether the employer breaches the de minimis threshold for unclassified benefits.
The childcare expenses will be tax deductible to the employer under the general permission on the grounds that they are the cost of providing a fringe benefit or part of the employee's remuneration.