How much do I enter for the taxed fringe benefit for electricity and water?
When does this apply?
This applies when the employer pays the employee's electricity and water bills.
Why is it taxed?
When the employer pays these bills, the full amount counts as extra income for the employee. So tax is paid over it. This is called a taxed fringe benefit. (A fringe benefit is something extra an employee gets on top of their pay.)
What amount do I enter?
Enter the amount the employer actually paid for electricity and water in this wage code.
Tip: use an average amount
Electricity and water bills often change from month to month. To keep things simple, you can:
- Work out an average monthly amount.
- Enter this average amount every month.
- Every six months (for example), compare it with the real bills.
- Correct the difference.
Example
- You expect the bills to be about XCG 150 per month. You enter XCG 150 every month.
- After six months, you have entered 6 × 150 = XCG 900.
- The real bills for those six months add up to XCG 960.
- The difference is XCG 60. You add this XCG 60 in the next month.