It's Monday 10 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 ... 10 DECEMBER 2018
Christchurch put on a stunner of a day yesterday with a temperature of 26 degrees – roll on Xmas they say!
Where do you sit on the school first XV poaching saga? Forget about St Kentigerns in Auckland, it happens right here in Christchurch. It's very much out of hand and needs the "slam dunk" put on it!
You might have caught recently what our top CEO salaries are, and in particular what the heads of our main trading banks are paid. I've worked it back to an hourly rate of approximately $960 an hour – not bad!
There is just 21 days left in the year that has our stock markets spooked, the US versus China Trade War, the All Blacks being beaten twice, a couple of very close wins and whether Father Christmas should be a woman, Maori or more so should he just be as we know him best?
QUESTION OF THE WEEK... 14 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.