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Manage your employees' taxable fringe benefits by creating this document

by , 01 October 2014
Do you have a lot of employees? Do you give all of them fringe benefits? Do you hate working out their tax?

Fringe benefit tax fluctuates depending on what the benefit's value is or how your employee used it. This makes it harder to work out accurately and it gets worse when you have to do this calculation for 50 employees.

Luckily, there's a way to keep track of your employees' fringe benefits so you can work out everyone's taxes correctly...

 

Create this document to manage your employees' fringe benefits

 
To manage all your employees' company benefits, you need to create a benefit register. This is a fancy way of saying create a list of all the employees you give benefits to and what you give each of them.
 
Each month, record all the benefits you gave each employee and whether or not it was a monthly benefit (medical aid contributions) or a once-off benefit (long service award over R5 000).
 
You must get each employee to sign off on the register to confirm they used or got those benefits during that month.
 
Then you can create an individual list for each employee to work out their taxes. 
 
Here's how this method will benefit your fringe benefit management. 
 
*********** Reader's choice  ***************
 
12 Taxable fringe benefits - are you taking advantage of all of them?
 
There are hundreds of companies out there that don't know which fringe benefits are taxable or they land up taxing the wrong percentage on them...
 
This kind of error could cost you thousands in penalties to SARS if it catches you out – and it will!
 
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This method of recording fringe benefits will help you in the following ways

 
This method helps you keep track of which employees used or got what types of benefits. This enables you to accurately work out everyones taxes based on the benefits they used.
 
It also gives your employees a chance to ensure you tax them on the right company benefits.
 
Clever management is all about the details. So create this detailed document to help you manage your employees' fringe benefits. 

Recommended Product: Your Fringe Benefits Problem Solver. With 77 answers to your questions.
 
 

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