Tax Free - Payments to staff

Modified on Fri, 1 Mar at 7:30 AM

The general rule is that everything given to an employee whether in cash or kind is taxable.  


Payments

All amounts paid to employees, that do not have to be repaid, are taxable.  This includes:

- the salary or wage amount

- allowance/s

- transport


Benefits

The value of any benefits, taken as cost to the employer in most cases, such as:

- the private element of mobile telephone usage 

- the private element of motor vehicle usage 

- Transport provided to staff using the organizations own vehicles 

- the value of food or provisions 

- housing (based on the market rental value of the property)

- loan benefits where employees are charged less than the LIBOR rate of interest plus 5% 

- Staff meals provided to staff in the staff canteen


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