Accommodation allowances for workers
If you provide or pay for accommodation as a salary trade-off then this is treated has a taxable benefit allowance.
Perhaps you provide your employee free board? Then you need to calculate the taxable value of what is being supplied. This may include food, electricity on top of the accommodation.
Another example of this would be if you provide accommodation in exchange of work, then this would be taxed with the employee's wages in the pay period it is paid.
There are some exceptions and exclusions to employer-provided accommodation.
You can check out IRD’s comprehensive guide on income tax treatment for employees here.
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