If you’ve provided incentives or rewards to your employees for getting their COVID-19 vaccination or booster dose, it’s important to understand what your tax and super obligations are.
Incentives and rewards may include:
- cash payments
- paid leave
- transport to and from the vaccination
- non-cash gifts – such as vouchers and gift cards.
If you’ve provided your employees with a cash payment, you must:
- include the payment in your employee’s salary and wages
- withhold tax from the payment amount under pay as you go (PAYG) withholding
- include the amount in your employee’s ordinary time earnings – that you use to work out your super contributions for the employee.
If you’ve provided non-cash benefits, you may have to pay fringe benefits tax on them, unless an exemption applies.
To view further detail from the ATO, click HERE
