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Social media etiquette

There is no denying that social media is fast becoming the most powerful way for businesses to communicate with their existing and potential customers.

Although it has become a new approach to communication, businesses should always remember to treat their customers as if they were dealing with them face-to-face.

Here are some important rules to remember when using social media for business:
Fill out details
Fill out the profile information completely, providing the name of the business, a way to make contact and some information on what services and products the business offers. This will assure the customer that the businesses profile is legitimate.

It is important to have an appropriate profile picture such as the company logo so that clients are able to easily identify with the brand. It is not a good idea to have the same profile for both business and personal use. Creating separate accounts will keep clients separated from friends and ensure that the business maintains a professional image.

Use manners
It may seem simple, however treating clients with respect online can go a long way. Things as simple as saying ‘please’ and ‘thank you’ can give a positive image of the business. It doesn’t matter that the interactions are occurring behind a screen, clients should be treated exactly how they would in person.

Offer something of value
Use the social media platforms to engage with customers and offer them something of value. Clients will become quickly bored with images and posts only about the business. Don’t just restrict content to only focus on the business, interact with clients about current events or topics that are relevant to the business, or find interesting quotes and images to share. Facebook and Instagram are also key platforms for offering competitions or giveaways. Clients will be eager to be active on the profile if they are getting something out of it as well.

Don’t over-share
Although businesses are keen to be active on social media to ensure that they are reaching their target market, this can be just as bad as not posting at all. No-one likes the friend who barrages their page with multiple posts a day and the same goes for businesses. Keeping posts to one or two a day will keep the business active on their clients feed; however will not annoy them enough so that they click ‘unfollow.’

It is a good idea for businesses to implement a content plan and map out when, and what, they will post to each social media platform. Also, think about the best time to post for the target audience. For example, if the business targets professionals it would be ideal to post in the morning and afternoon when they are commuting to work as they are likely on their own personal social media pages.

Reread what is written
Consider composing tweets or posts in a word document before posting them. This allows time to edit the text for grammar and spelling mistakes. Also, remember that the Internet never forgets and one post in the heat of the moment can go viral, damaging the reputation of a business and losing a lot of clients.

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Understanding Fringe Benefits Tax (FBT) And What It Covers

April 15, 2024

For businesses in Australia, providing fringe benefits to employees can be a valuable way to attract and retain talent, as well as incentivise performance.

However, employers need to understand their obligations regarding Fringe Benefits Tax (FBT). The Australian Taxation Office (ATO) administers FBT, a tax on certain non-cash benefits provided to employees in connection with their employment.

Let’s explore the types of fringe benefits subject to FBT to help businesses navigate this complex area of taxation.

  1. Car Fringe Benefits

One common type of fringe benefit is the provision of a car for the private use of employees. This includes company cars, cars leased by the employer, or even reimbursing employees for the costs of using their own cars for work-related travel.

  1. Housing Fringe Benefits

Employers may provide housing or accommodation to employees as part of their employment package. This can include providing rent-free or discounted accommodation, paying for utilities or maintenance, or providing housing allowances.

  1. Expense Payment Fringe Benefits

Expense payment fringe benefits arise when an employer reimburses or pays for expenses incurred by an employee, such as entertainment expenses, travel expenses, or professional association fees.

  1. Loan Fringe Benefits

If an employer provides loans to employees at low or no interest rates, the difference between the interest rate charged and the official rate set by the ATO may be considered a fringe benefit and subject to FBT.

  1. Property Fringe Benefits

Providing employees with property, such as goods or assets, can also result in fringe benefits. This can include items such as computers, phones, or other equipment provided for personal use.

  1. Living Away From Home Allowance (LAFHA)

When employers provide allowances to employees who need to live away from their usual residence for work purposes, such as for temporary work assignments or relocations, these allowances may be subject to FBT.

  1. Entertainment Fringe Benefits

Entertainment fringe benefits arise when employers provide entertainment or recreation to employees or their associates. This can include meals, tickets to events, holidays, or other leisure activities.

  1. Residual Fringe Benefits

Residual fringe benefits encompass any employee benefits that do not fall into one of the categories outlined above. This can include many miscellaneous benefits, such as gym memberships, childcare assistance, or gift vouchers.

Compliance With FBT Obligations

Employers must understand their FBT obligations and ensure compliance with relevant legislation and regulations. This includes accurately identifying and valuing fringe benefits, keeping detailed records, lodging FBT returns on time, and paying any FBT liability by the due date.

Fringe Benefits Tax (FBT) is an essential consideration for businesses that provide non-cash benefits to employees.

By understanding the types of fringe benefits subject to FBT, employers can ensure compliance with tax obligations and avoid potential penalties or liabilities.

Seeking professional advice from tax experts or consultants can also help businesses navigate the complexities of FBT and develop strategies to minimise tax exposure while maximising the value of employee benefits. Why not start a conversation with one of our trusted tax advisers today?