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    Fringe Benefits PDF

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    lena cpa
    This document discusses fringe benefits, which are goods, services, or cash provided by an employer beyond regular wages. It covers what types of benefits are subject to fringe benefit tax, such as housing, vehicles, and education assistance. Certain benefits, like statutory minimum wage and retirement contributions, are not taxed. The tax rate is 35% of the grossed-up value of benefits. To calculate fringe benefit tax, the actual value is grossed up and multiplied by the tax rate. Employers must file and pay this tax.

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    Fringe Benefits PDF

    Uploaded by

    lena cpa
    69 views2 pages
    This document discusses fringe benefits, which are goods, services, or cash provided by an employer beyond regular wages. It covers what types of benefits are subject to fringe benefit tax, such as housing, vehicles, and education assistance. Certain benefits, like statutory minimum wage and retirement contributions, are not taxed. The tax rate is 35% of the grossed-up value of benefits. To calculate fringe benefit tax, the actual value is grossed up and multiplied by the tax rate. Employers must file and pay this tax.

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    4. Fringe Benefits.pdf

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    This document discusses fringe benefits, which are goods, services, or cash provided by an employer beyond regular wages. It covers what types of benefits are subject to fringe benefit tax, such as housing, vehicles, and education assistance. Certain benefits, like statutory minimum wage and retirement contributions, are not taxed. The tax rate is 35% of the grossed-up value of benefits. To calculate fringe benefit tax, the actual value is grossed up and multiplied by the tax rate. Employers must file and pay this tax.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    69 views2 pages

    Fringe Benefits PDF

    Uploaded by

    lena cpa
    This document discusses fringe benefits, which are goods, services, or cash provided by an employer beyond regular wages. It covers what types of benefits are subject to fringe benefit tax, such as housing, vehicles, and education assistance. Certain benefits, like statutory minimum wage and retirement contributions, are not taxed. The tax rate is 35% of the grossed-up value of benefits. To calculate fringe benefit tax, the actual value is grossed up and multiplied by the tax rate. Employers must file and pay this tax.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Lesson 2: Fringe Benefit

    Duration: 3 hours

    Objectives:

    ● Explain fringe benefit


    ● Discuss the nature of fringe benefit
    ● Understand the items included in fringe benefit
    ● Compute fringe benefit tax

    Lesson:

    What are Fringe Benefits?

    Fringe benefits are goods, services or other benefits granted in cash or in kind by an employer
    to an individual employee that do not belong to rank and file employees.

    ​What are the Benefits that are subject to Fringe Benefits Tax?

    This includes, but not limited to, the following:

    a. Housing
    b. Expense Account
    c. Vehicle of any kind
    d. Household Personnel, such as maid, driver and others
    e. Interest on loan at less than market rate to the extent of the difference between the market
    rate and actual rate granted
    f. Membership fees, dues and other expenses borne by the employer for the employee in social
    and athletic clubs or other similar organizations
    g. Expenses for foreign travel
    h. Holiday and Vacation Expenses
    i. Educational Assistance to the employee or his dependents; and
    j. Life or health insurance and other non-life insurance premiums or similar amounts in excess of
    what the law allows.

    ​What are the Fringe Benefits that are NOT Subject to the Tax?

    The following that are not subject to Fringe Benefit Tax are:

    a. Benefits given to employees that are required by the nature of or necessary to the trade,
    business or profession of the employer,
    b. Benefits given to employees that is for the convenience and advantage of the employer.
    c. Statutory Minimum Wage for Minimum Wage Earners (MWEs)
    d. Holiday Pay, Overtime Pay, Night Shift Differential for MWEs only
    e. 13th Month Pay and Other Benefits
    f. De Minimis Benefits Given to Managerial and Rank and File Employees
    g. SSS, PhilHealth, and Pag-IBIG Mandatory Contributions
    h. Other Non-Taxable Compensation
    What are the Tax Rate of Fringe Benefits Tax?

    How to Compute the Fringe Benefits Tax?

    a. First, determine the ​Grossed-Up Value of the fringe benefit by dividing the actual monetary
    value by 65%.

    b. Then, Multiply the Grossed-up value by 35% to get the ​Fringe Benefit Tax (FBT)​.

    If the employee is a non-resident alien ​not engaged in trade or business in the Philippines, get
    the Grossed-Up Value by dividing the actual monetary value by 75% and multiply it to 25% to
    get the Fringe Benefit Tax.

    What and When to File and Pay Fringe Benefits Tax?

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