RD 50Employer’s liability for attributed benefits

1. This section applies when an employer is required to attribute the value of a fringe benefit to an employee under sections RD 47 and RD 49.

2. The employer’s FBT liability in relation to the employee is the amount calculated using the formula—

   $tax\; on\; all-inclusive\; pay\; -\; tax\; on\; cash\; pay.$

   Where:

3. In the formula,—

4. tax on all-inclusive pay is the amount determined at the rate set out in schedule 1, part C, table 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) on the amount of the employee’s all-inclusive pay calculated using the formula in section RD 51(2):
5. tax on cash pay is the amount calculated under section RD 51(3)(b) or (4)(b).

6. If the employer has an exception for an employee under section RD 52 in a tax year, and the employer pays FBT at the rate of 49.25% of the taxable value of the attributed fringe benefits under section RD 52(3)(a), the employer must deduct the FBT payable in the tax year from the result of the formula in subsection (2).

7. Instead of calculating FBT under subsections (2) and (4), an employer may choose to—

8. pay FBT, for each employee to whom they are required to attribute the value of a fringe benefit under sections RD 47 and RD 49, at the rate of 63.93% on the taxable value of the fringe benefits attributed to the employee; or
9. apply subsection (6).

10. An employer who makes an election under subsection (5) to apply this subsection must—

11. pay FBT at the rate of 49.25% on the taxable value of the fringe benefits attributed to the employee, for each employee to whom all of the following apply:
    1. the employee is an employee to whom the employer is required to attribute the value of a fringe benefit under sections RD 47 and RD 49; and
    2. the taxable value of all fringe benefits for the employee, as determined under section RD 51, is $13,400 or less; and
    3. the cash pay of the employee, as determined under that section, is $160,000 or less; and
12. for each other employee to whom the employer is required to attribute the value of a fringe benefit under sections RD 47 and RD 49,—
    1. pay FBT at the rate of 63.93% on the taxable value of the fringe benefits attributed to the employee, if subparagraph (ii) does not apply; or
    2. pay FBT at the rate of 49.25% on the taxable value of the fringe benefits attributed to the employee, if the employee’s all-inclusive pay, calculated using the formula in section RD 51(2), is less than $129,681 and the employer chooses 49.25%.