If you reimburse an employee for a non-cash benefit that qualifies for the fringe benefit tax health and safety exemption (such as a flu shot), the amount you reimburse is exempt income for the employee. This also applies if you pay the provider on behalf of the employee.
Greater Gizmos Limited provides free on-site flu vaccinations to their employees. Jane, an employee of Greater Gizmos Limited, was away from work on the day of the free on-site flu vaccinations, and had to arrange her own vaccination with her general practitioner (GP).
Greater Gizmos Limited reimburses Jane for the amount of the flu vaccination she paid to her GP. The reimbursement amount Jane receives is exempt income and is not taxable.
For more information on the health and safety exemption for fringe benefit tax refer to our Fringe benefit tax guide - IR409.