Question: Can you please explain this question Below is a list of payments/benefits provided to employees at Brown Engineers Limited for the year ended 31 March
Can you please explain this question
Below is a list of payments/benefits provided to employees at Brown Engineers Limited for the year ended 31 March 2022.
- Wages/Salary paid to employees
| Employees | Gross Remuneration |
| Joe Brown | $70,000 |
| Jill Brown | $70,000 |
| Jack Grey | $50,000 |
| John Doe | $50,000 |
- Vehicles provided to employees
| Vehicles | Cost | Book Value 31/3/21 | Days available for private use | Purchased | ||
| Dodge Ram Truck | $125,000 | $62,500 | incl GST | Joe's Car | 365 | 1/04/2000 |
| Holden Ute | $56,000 | $28,000 | incl GST | Jack's car | 104 | 1/04/2000 |
- Loans provided to employees
John Doe was given an interest free loan of $4,000
- Christmas gratuity
In December the Brown's took the staff out for Christmas dinner. Total cost was $450
Jack was given a season pass to the Crusaders home games which cost $220
- Work Equipment
Jack and John both have work phones. Each phone cost $1,100 including GST
- Insurance
As part of their employment package, Jack and John both have health insurance
Their annual premiums are as follows:
| Jack | $625 |
| John | $730 |
- Workers Accommodation
Jack and John live together in the workers house on site. The Brown's previously rented the house to the neighbour for $8,100 per year.
Required
Identify the dollar value of the fringe benefit received by each employee for each of the 7 types listed and the appropriate FBT % rate using the alternate rate method. If more than one method can be applied (i.e. tax book method or cost method) then use the most tax efficient option. If no fringe benefit applies to any of the 7 items above, identify why.
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