Fiji Times Wednesday 12 April 2017 LAST week, we looked at employers that provide employee incentives especially non-cash benefits as they entice and motivate individuals in their respective businesses. This week we continue with the topic.
If a motor vehicle is used for both work and personal purpose for the whole of a quarter, the value of the benefit computed will be subject to 50 per cent.
Example: Employer provides a car with an engine capacity of 1800cc to employee costing $50,000.
The car is provided wholly for personal use and, therefore, the provision of the car is a motor vehicle fringe benefit.
The value of the benefit for a quarter is $778.
If for a quarter, employee uses the car 50 per cent of the time for work purposes and 50 per cent of the time for private purpose, the value of the benefit for the quarter is $389 ($778 x 50 per cent). Read more…
