When did you last review the rent charged to your employees?

 

   The Inland Revenue has recently released a statement regarding the market rental value of employer provided
   accommodation.   In some circumstances the rent   an employer charges their employers for use of their
   accommodation may not be at market rates.

 

It is recommended if you do provide any employees with accommodation, you review the amount every three years and retain confirmation of how the amount was calculated. This can be through a simple search of Trade Me looking at similar properties, or by getting a real estate agent to come through and give you an appraisal.

 

A review of the rent may result in employee remuneration packages changing which can affect their entitlements to working for families, child support and student loan payment.

 

If you think the above may affect your businesses please contact our office.