Tax Tracking for Reportable Fringe Benefits

System

This discussion was created from comments split from: Tax Tracking Code for STP2.

KYLIE TANNER

Hi Rav,

What Tax Tracking Code do we use for Employee FBT Contribution? I currently have it as Sal Sac Other Employee Benefits (O) but then it combines it with the Salary Sacrifice amount on the portal STP Portal. Does it need to be reported separately to ATO?

I have Reckon Accounts Desktop.

Update I've found Reportable Fringe Benefits tax tracking type in the list now and presume this is used.

KYLIE TANNER

Hi Rav,

I have now uploaded STP2 and the Fringe Benefits Tax deduction amount should be $157.00 (as shown on the payslip) but it's coming up as $2,198. Can you tell me how this is happening? Do we not tax track this deduction?

Acctd4

Hi Kylie

Fringe Benefits are only applicable for display over a certain amount & they're not deducted, they're added to the Paycheque. It sounds like it may not actually be a FB ? What is this amount specifically for ?

The employee doesn't pay Fringe Benefit Tax ("FBT"), the employer does.

KYLIE TANNER

Hi Shaz,

Thank you for your reply.

The amount including GST is $157 per week is a deduction from Gross Wages towards Motor Vehicle Expenses paid by the company. This doesn’t reduce Tax Withheld. 22/23 year resulted in a return so nil for FBT Reportable Benefits on PAYG Income Statement.

Do you think the Tax Tracking should be (none) as previously set on Payroll Item prior to STP2?

Acctd4

Hi Kylie

If it's being deducted from the employee's pay, it's not a Fringe Benefit. A Fringe Benefit is something additionally provided to the employee for personal use (either in part or fully) that's not in monetary form. This deduction is NOT the employee's "Fringe Benefit" amount & is not the amount reported here. This employee contribution is reported by the employer & reduces the value of the employee's grossed-up Reportable Fringe Benefit amount (& the amount of FBT the employer is liable for on it).

The amount to be included on the employee's Income Statement - eg the "Reportable Fringe Benefit" ("RFB") amount - is a specifically-calculated amount that you need to obtain from your tax agent who lodged the Fringe Benefit return.

KYLIE TANNER

Thanks I will check with my Accountant before lodging STP moving forward.