Ngā takoha kaitukumahi ki ngā pūtea kaimahi Employer contributions to employee funds

You must pay fringe benefit tax (FBT) on contributions you make to any employee's:

• sickness, accident or death benefit fund
• life, pension, personal accident or sickness insurance policy
• friendly society insurance fund superannuation scheme where employer
• superannuation contribution tax (ESCT) does not apply
• funeral trust.

You pay FBT on contributions you make to an insurance policy when you:

• take out the policy for an employee and pay their premiums
• are a life insurer and offer discounted premiums for your life insurance agents and their families.

You do not pay FBT on contributions you make to an insurance policy when you:

• pay the premiums on a policy which an employee took out. This is included in their gross salary or wages and subject to PAYE. 
• take out a policy for an employee, pay the premiums and gain all the benefit from the policy. Your contributions are not included with their gross salary or wage.