Do you provide accommodation for your employees?
Short point, accommodation and/or payments for accommodation provided to employees related to their employment is taxable to the employee through the PAYE system. This is the starting position, good news though, there are some exemptions that could apply but there are conditions and time limits:
- Overnight and temporary accommodation that relates to the performance of employment duties (temporary being less than 12 months)
- Work related relocation
- Out of town secondments and projects
- Conferences and training courses
What is taxable to the employee? The market value of the accommodation less any employee contributions is the taxable value.
Oh, and don't forget that any payment made through the PAYE system will also impact Kiwisaver contributions and will have an impact on income protection policies, etc.
If you have employees that you pay accommodation directly or indirectly for and you are not sure if you have all the boxes ticked… give us a call, we can walk and talk you through it.