Employee Assistance Program (EAP) for small business
A healthy employee is often one who is engaged and satisfied with their job – and sometimes there can be lots of factors which can impact an employees mental health.
EAP services can be offered to your employees as an additional benefit to assist them with coping with difficult situations at work, and can be seen as an incentive for employee retention.
Accessing an EAP for your employees can be considered tax deductible in certain circumstances.
We take a look at what an EAP is and the tax implications of providing this service to employees.
What is an EAP?
An EAP is where a member of staff would contact a designated provider to seek assistance with any issues they are experiencing.This would usually involve counseling/psychology services, known as talk therapy.
How do EAP’s work?
The employer and EAP provider set the terms of the EAP in an agreement which is then distributed to employees. These terms can include whether sessions can only be used for work-related issues or for personal/home issues as well.
What are the tax implications of providing an EAP?
If employees use an EAP service and discuss work-related matters only, this would be considered a tax-deductible expense. For adhoc or one-off psych costs, EAP services would be able to provide a letter stating the session was relating to work-related issues and this can be used to claim the session as tax deduction.
When do fringe benefits apply?
Fringe Benefits Tax (FBT) does apply when employees discuss private/home matters with the EAP provider. This is seen as providing your employee with a benefit that isn’t directly related to their role, and FBT would be applied.
How do I organise an EAP for my workplace?
There are a number of providers in WA which offer EAP services for small businesses with various fee structures..
We have compiled a short list of providers we have found recently. Fees were current as at September 2024. We are in no way associated with these organisations and advise you to conduct your own research prior to engaging a provider to ensure it is the right fit for your business and team.
| Name | Offer | Price |
| Mindfi | Counselling and online platform | $26 Per month fee + $150 per therapy session |
| Sonder | Counselling, medical and safety | TBC |
| EAP Assist | Counselling | 25 counselling hours annually = $1500 +GST* paid upfront |
| Clear Health Psychology | Counselling | From $210 per session, no ongoing fees |
| Lion Counselling | Counselling | PAYG |
Are there any alternatives to staff using an EAP?
You don’t have to have an agreement with an EAP and could instead offer ad hoc or one-off sessions with your/your employees chosen mental health provider.
You might also consider referring your staff to free mental health resources available online.
This could include the below:
| Organisation | Information |
| Head to Health | https://www.sjog.org.au/campaigns/microsites/head-to-health |
| Lifeline | https://wa.lifeline.org.au/get-help/information-and-support/ |
| Beyond Blue | https://www.beyondblue.org.au/get-support |
What if I need support myself?
If you have an EAP service and are an employee of your business you can also access the EAP.
There are also plenty of resources available for small business owners. These include:
| Organisation | Information |
| Small Business Development Corporation | https://www.smallbusiness.wa.gov.au/people/managing-stress-anxiety |
| Business Wellbeing online training | https://businesswellbeing.org.au/ |
| Ahead for Business | https://aheadforbusiness.org.au/resources |
We’re here to help you understand the implications for engaging an EAP service. Current clients can email us on office@ultimate-tax.com.au or call 6144 3370 to chat to our friendly staff.
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