Q: Could you please advise whether a `well-being allowance’ for reimbursement of the cost of activities to enhance an employee’s personal well-being should be reimbursed through accounts payable or payroll.  If it is reimbursed through payroll, is it taxable or non-taxable?

A: When you say reimbursement, does the employee pay for activities and then you reimbursement them? 

Is fringe benefit tax involved?

Can you provide any clause that has been provided with this reimbursement?

Q: The employee pays for the activity and then is reimbursed when they produce a receipt, $100 per annum allowed.  There is no fringe benefit tax involved.  No other clauses that I know of except it has to be related to `well-being’ e.g. gym membership.

A: If this is a true reimbursement “an expense incurred by an employee when working for their employer then non-taxable.  It would be more a taxable benefit under fringe benefit and kept away from payroll.

If you put it through payroll then it would be a taxable benefit and would then part of the taxable gross and impact on KiwiSaver and Leave.