Work Christmas Parties and Gifts
The season to be jolly is fast approaching! But you may need to ho-ho-hold-up before you start rewarding your employees with gifts or parties this Christmas. It is important to note that fringe benefits tax may apply when providing all the Christmas trimmings.
So before you get your tinsel in a tangle, consider the following:
- How much it costs.
- Where and when it is held. A party held on work premises on a normal work day is treated differently to an event outside of work.
- Who is invited. Is it just employees or are partners, clients or suppliers also invited?
Similarly, where you provide Christmas gifts, you’ll need to consider:
- The amount you spend
- The type of gift. Gifts such as wine or hampers are treated differently to gifts like tickets to a movie or sporting event
- Who you are giving the gift to. There are different rules for employees and clients/suppliers.
Follow the below links to learn more:
