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Overview
Fringe benefits are non-cash perks provided to employees in addition to their salary, such as a company car, health benefits, or housing allowances. In AdviserLogic, you can accurately record fringe benefits to ensure they are factored into financial planning and compliance reporting.
Fringe benefits play an important role in a client's overall financial position. Properly recording these benefits helps provide a complete view of taxable and non-taxable income, impacting budgeting, tax obligations, and financial strategies.
When to Record Fringe Benefits:
Clients receiving non-cash benefits from their employer (e.g., salary packaging).
Self-employed clients offering fringe benefits to employees within their business.
Assessing taxable vs. non-taxable income for financial planning purposes.
By accurately capturing fringe benefits, you can ensure precise financial projections, effective tax strategies, and a well-rounded approach to financial advice.
Adding Fringe Benefits
To add Fringe benefits in AdviserLogic navigate to Client’s record, then hover over Fact Finder 2.0 > select Income from the drop-down menu.
or select Fact Find 2.0 > Select Financial > then select Income.
Hover the mouse over the Add button, from the top right of the income window, then hover over the Fringe Benefits option from the drop-down menu. Choose the type of fringe benefit from the subsequent drop-down.
General Detail
Fill in the required fields (marked with a red asterisk), enter any additional details as needed, then click Save and Close to complete the process.
Select the type of Fringe benefit from the Sub Category drop-down
Description - By default, the selected category will show in this field, this is editable as required.
Enter the Amount.
Frequency: Select the Frequency of the benefit from the list of options.
From the drop-down menu, select the recipient of the benefit (Client, Partner, or Entity) to ensure the fringe benefit is assigned correctly.
Select Yes or No from the drop-down to determine whether the Taxation applies to the benefit.
Additional Details
Set the start and end dates from the options in the drop-down list in Income Start/ Income End, or select Age as the measured parameter.
Select the Growth type.
⚠️Note
Fringe Benefits do not result in any actual cash outflow, meaning they will not show in the Cash Account Sheet within a Cashflow scenario.
They are shown under Adjusted Taxable Income in the Taxation tab within a Cashflow scenario.
