RE: STP2 Upload to Portal

Alison Hart

Just wanting someone to confirm the layout of details when uploaded to the portal as it now looks different.

Income Type : SAW

Gross Payment $amount = Type INB Gross

Leave $amount = Type 0

Other Payments

• Super $amount = Type L
• Fringe Benefits Tax $amount = Type X (the amount is correct but why does it say: FBT rather than RFB Tax Exempt.

Our RFB Tax Exempt, used to show under the heading, Fringe Benefits Tax, Tax Free Amount $amount.

I am concerned that I may have used a wrong Tax Tracking Code.

Thanks so much

Ali

Rav

Hi @Alison Hart

You're exactly right, there have been some updates made to GovConnect with STP Phase 2 in order to show additional detail around disaggregation.

I'd recommend checking out the info in this article below for more info -

https://help.reckon.com/article/fcib0llbb3-stp-phase-2-changes-in-reckon-gov-connect

Alison Hart

Hi Rav,

Thank You.

So does this mean what I have done is correct. Even though it shows as Fringe Benefits Tax and not the actual Reportable Fringe Benefits Tax Exempt?

Thanks

Ali

Acctd4

Hi Ali

Map it to the " ...Tax Exempt" option instead, then re-generate your STP file & submit it. Then it will be correct 😊 :

Alison Hart

Hi Shaz,

I have used the RFB Tax Exempt tracking type. But I still did the process again and it is still showing the same on the portal.

Hart FB.pdf

Screenshot 2023-08-14 163101.png

I just noticed that your Payrol Item is RFB Company Contribution. We have always had the item as an addition. Does that make a difference.

Thanks

Ali

Acctd4

Hi Ali

Yes, RFB is a Company Contribution - rather than an Addition - because it's an employer-paid liability. This could be why it's not able to reflect it correctly 😬

Try setting it up as a Company Contribution instead & it should work 😊

Alison Hart

Hi Shaz,

I have setup a new payroll item as company contribution, but when I picked up the last pay and changed it to the new item it has moved it from Employee Summary to Company Summary and reduced the pay by the FB amount, $550. 00. Note: we have the same amount each pay of $550. I added the new Item to my pay record but still isn't working.

Screenshot 2 2023-08-14 174106.png

Alison Hart

Also, changing the Payroll Item it wouldn't let me leave blank the GrossVnet option.

Acctd4

It hasn't deducted anything in your screenshot - The gross amount still totals $ 357.30:

As a Company Contribution, it doesn't affect anything else, it just shows as an additional value (like Super)

The final (grossed-up) RFB amount is determined by your tax agent when they submit the FBT return & should just be manually added to the applicable employee's last Paycheque in the FBT year.

So ... from what you've said above I'm wondering if what you're actually referring to is a "Salary Sacrifice" (SS) amount ? This is an amount out of the employee's gross earnings every pay that reduces their PAYGW & it is from these SS amounts, that the tax agent CALCULATES the actual Reportable Fringe Benefit (RFB) annual amount.

Alison Hart

The cheque amount should be $907.30.

I am thinking it should be a SS as what you say above is correct, it reduces our Taxable Income.

I do the year end adjustment with the grossed up figure on the last payrun for June.

I think the confusion is we havent used the word SS here before, so I was getting confused 🤦‍♀️

Could you please point me in the direction of how to setup the pay item for SS.🙏

This is how my pay usually looks.

Screenshot 3 2023-08-14 182558.png

Really appreciate your help with this

Acctd4

OK ... that's not SS either then 😬 SS involves "sacrificing" part (or all) of the gross amount elsewhere to reduce PAYG, not adding it on. This looks like an additional amount being paid that's just not taxed ?

Are you able to clarify further what the scenario is for this amount eg what it's for & why it's paid ?

Alison Hart

This is due to us being a Public Benevolent Instutition with DGR status.

We are entitled to tax concessions to a certain amount each year. The amount equates to $550 per fortnight and I provide receipts to cover this amount.

Does this help or maybe I should have a conversation with our auditor for more clarification.

Thanks

Ali

Acctd4

I believe the issue is the initial setup on the Paycheque. The total gross should INCLUDE that $ 550 which is then "sacrificed" so I'm thinking it should look more like this (ignore the leave - I haven't set that up on this example):

What are your thoughts ?

Alison Hart

Yes, looks good to me.

I might just run this by the Auditor, if that's ok with you.

Alison Hart

Hi Shaz,

Just a question: going back to the way I had it originally setup, the Statement on the Portal shows Fringe Benefits Tax as discussed above but my Income Statement on my MyGov is correct.

MYGov Income Statement.png

So this confuses me even more.

Waiting to hear back from our Auditor as how to process it.

Thanks for all your assistance, will let you know the outcome

Acctd4

Hi Ali

"Salary Sacrifice" is another term for "Salary Packaging" where an employee forgoes part (or all) of their monetary gross pay in exchange for an alternative benefit (eg payment of expenses) to reduce their PAYGW.

Unless exempt, "Fringe Benefit Tax" can be payable by the employer on the grossed-up value of these arrangements. This "Reportable Fringe Benefit" (RFB) value is shown on the employee's Income Statement.

So ... Salary Sacrifice/Packaging is a type of Fringe Benefit.

My concern is that your Gross Pay & Super are being under-reported on your original setup 😬

Alison Hart

Hi Shaz,

UNOH is exempt from Fringe Benefits Tax.

I process a YTD Adjustment and gross up the Fringe Benefit Amount dated 31st March each year on the last pay run for June.