The ATO has reminded employers to consider their tax and super obligations when employees are provided with incentives or rewards for getting their COVID-19 vaccination.

When employees are provided a cash payment, including paid leave for employees to get their COVID-19 vaccination (or additional paid leave to recover from any vaccination side effects), employers should withhold PAYG withholding and make super contributions on the amount. 

Furthermore, the payment must be reported to the ATO via Single Touch Payroll (‘STP’) as part of the employee’s salary or wage.

On the other hand, employers must consider the FBT consequences of providing non-cash benefits as an incentive for their employees to get vaccinated. 

Such benefits may include:

Goods or services provided to the employee.

Vouchers and gift cards.

Prizes won by an employee in a competition (e.g., a raffle).

Note that certain FBT exemptions and reductions may apply in some circumstances. 

For example, if an employer provides or pays for an employee’s transport to get their COVID-19 vaccination, there is generally no FBT payable.

If you have any questions or would like to speak to one of our professional business and tax advisors, please contact our office on (08) 9392 7600 to make a booking or click here.

With three offices across Western Australia and over 20 years of experience, Muntz Partners is a dynamic team of highly trained and skilled individuals committed to providing innovative and effective advice, excellent service and maintaining only the highest standards in ethical professional practice.

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.

X