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Do you need to lodge a return? You must lodge a fringe benefits tax (FBT) return if, for the FBT year (1 April to 31 March), you either: have FBT payable on fringe benefits you provided to your employees. paid FBT instalments through your activity statements.
Fringe benefits tax (FBT) is a tax paid by employers on certain benefits provided to their employees, or to their employees family or other associates. FBT is separate to income tax. Its calculated on the taxable value of the fringe benefit.
Fringe benefits are generally included in an employees gross income (there are some exceptions). The benefits are subject to income tax withholding and employment taxes.
2. Fringe Benefit Exclusion Rules Accident and health benefits. Achievement awards. Adoption assistance. Athletic facilities. De minimis (minimal) benefits. Dependent care assistance. Educational assistance. Employee discounts.
Taxing for Fringe Benefits Taxable fringe benefits paid by the employer are included in the employees annual W-2 statement while taxing fringe benefits paid to independent contractors are reported on the Form 1099-NEC. Taxable fringe benefits paid to partners are reported on Schedule K-1 (Form 1065).
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Are Fringe Benefits Taxable? Any fringe benefit you provide is taxable and must be included in the recipients pay unless the law specifically excludes it. Section 2 discusses the exclusions that apply to certain fringe benefits. Any benefit not excluded under the rules discussed in section 2 is taxable.

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