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Using Reckon Accounts Premier Contractor Edition 2017 - payment summaries issue with FBT

SAS

Using Reckon Accounts Premier Contractor Edition 2017 - on previewing the payment summaries most of them have a zero against the Reportable FBT yet have 3 summaries that are blank. Also non of the summaries have an "X" for No if the employer is Exempt from FBT under section 57A. In saying that there is no FBT for any employers so is this only answered if there is an amount against Reportable FBT?

Comments

John G

hello SAS,

thanks for asking.

If you leave an FBT payroll item on an employee's pay schedule just once in the year when that employee is not receiving any FBT benefit, it triggers the FBT field on the payment Summary being populated, As you have not given any FBT, 0 is posted. If the FBT payroll item is never applied to an employee's pay the field will remain blank.

The Yes/No box is checked if an FBT item is used. No is checked for standard FBT, but if you are an exempt organisation, and the FBT item is setup with the Tax Tracking Type of Reportable Fringe Benefits (Tax Exempt), then the Yes box is checked.

Hope this helps explain the situation,

regards,
John.

John Graetz

The amount to be included under Reportable Fringe Benefits forms part of the Annual Fringe Benefits Tax return for the year to 31st March. It typically requires a separate non value entry processed through payroll and is therefore not something that is otherwise processed through a normal Pay such as Salary Sacrifice.

Details can be found from the following link on the ATO website.

https://www.ato.gov.au/Forms/PAYG-payment-summary---individual-non-business/?page=4

John L G

Ashu

I am using Accounts Premier 2018. How do I enter FBT Grossed up Value in Payment Summary?

John Graetz

Ashu. Refer to the following link for assistance:

http://kb.reckon.com.au/issue_view.asp?ID=436

The key thing to remember is that this special non value pay must be dated 31st March or earlier
When setting up the Payroll Item, I have called it Reportable Fringe Benefits and used the same account for both the Liability Account and Expense account. I end up with a warning message which I ignore. Remember that this is a non value entry through Payroll.
John L G

Ashu

Hi John,

Regarding FBT, I need to reduce Gross Earnings by the FBT Taxable Value on Payment Summaries. How do I process in Accounting Premier so the correct taxable value for FBT reduce the Gross Earnings?

John Graetz

Hi Ashu. Have you not been salary sacrificing the benefits out of the employees pays during the year? If you have been doing this, there is nothing further to do. The Reportable Fringe Benefits amounts which show on payment summaries are a reflection of the benefits which have been sacrificed throughout the FBT year to 31st March, which have been reported in your FBT Return for the year to 31/3/2018.

What you appear to be wanting to do, is not compatible with the way the system works.

If your employees have a Fringe Benefit by way of something that is free to them, e.g. the provision of a motor car, then this does not reduce their gross earnings (unless they have been somehow paying for this throughout the year), but is an additional amount reported on the Payment Summaries as it is a benefit which is being received in addition to their salaries.

You cannot just reduce an employees Gross Earnings, unless amounts have been actually deducted from their actual pay during the ?financial? year to 30th June.

I would be recommending that you go and talk to your Accountant, so that he can clarify all of this with you.

You can ring me on 0428 695454 if you require any clarification.

John L G