How do I enter the grossed up reportable FBT for relevant employees on their inb payment summary. I called Reckon and the couldn't help me.

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How do I enter the grossed up reportable FBT for relevant employees on their inb payment summary. I have tried calling Reckon technical support and they couldn't help me.
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Karen Martin

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Posted 3 years ago

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Charles van Rotterdam

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Firstly you need to set up a payroll item "FBT Grossup' as Company Contribution and 'Reportable Fringe benefits' as Tax Tracking, then you need to go to Employees>set up YTD amounts. It's a wee bit complex but you can call me on 02 66834083 I also have a spreadsheet that will give you the grossed up total and the amount that you need to put in to get to that figure
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Karen Martin

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Thanks for your help Charles....much appreciated
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Shane O'Meara

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Once you do that you will need to adjust the payroll liabilities report to take the liability and the expense from the accounts.
Go to Employees/payroll taxes/adjust payroll liabilities and then tick the "company" icon and minus the total grossed up figure that appears on the report. This will take it off the balance sheet and the expense off the P&L.
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Reckon FAQs, Employee

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Hi Karen,

Welcome to the Reckon Community and sorry to hear of your earlier experience. 

You can enter your calculated FBT amount through 2 additional payroll items that will negate each other and have no impact on the Net Pay.

You will need an FBT contribution item and and FBT deduction item

FBT Contribution Item
Payroll type:  Addition
Payroll Expense Account: Payroll Expense:FBT grossed up value
Tax Tracking Type:  Fringe Benefits Tax
Taxes:  None

FBT Deduction
Payroll Type:  Addition (you will enter a negative amount)
Payroll Expense Account: Payroll Expense:FBT grossed up value
Tax Tracking Type: None
Taxes: None

Enter these items in the Additional payroll items section of the pay.  
Enter the FBT Contribution amount as a positive amount: eg: 10,000.00
Enter the FBT Deduction amount as a negative amount:  eg: -10,000.00

The effect on Net Pay is zero.
The effect on Gross Payments is zero
The FBT field will show the amount – eg 10,000
The effect on the Payroll Expense account is zero.

 And remember to enter this amount in a pay dated before 31 March 2015.


Hope this helps.  


regards,
John
(Edited)
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Karen Martin

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Thanks for your reply....all works....phew....thanks for your help :)
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Nadine

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I have tried this method to enter the employee contribution through payroll and as it is a zero pay it won't let me record the entry. Any tips on how to override this?
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John G, Information Support Analyst

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Hello Nadine,

Add it to an existing pay dated before the 31st of March.


regards,
John.
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Nadine

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Thanks John. Sometimes the answer is just so obvious.....
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Sara Kennedy

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Hi John,

I have 2 questions with your process above:

1. Is there any way we can setup a default amount on the Payroll Item for the negative addition to negate the other dummy entry so that we don't have to do it manually for each pay?  It's just that the amount is different for each employee and we would prefer to avoid data-entry error each payday by having it set once and for all until advised by the employee.  I've done it using a "deduction" payroll item but this makes the Pay Total Report for management when they are reviewing the report.  Was hoping of another get-around without the manual data-entry.

2.  The offsetting dummy lines appear on the payslips of the employee which has raised questions with 3rd parties trying to understand the payslip when the employee is applying for a loan or credit facility.  Can this be made to not show on the payslips?

Thanks John.

S
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John G, Information Support Analyst

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Hello Sara,


Thanks for asking.

You only need to make one entry a year to an employee's pay for the grossed up reportable FBT.  And you can make that entry on a past pay, so it need not show on an employee's real-time payslip.

Hope this helps.


regards,
John
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Leshelle

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Hello John

I saw the note that said to enter the FBT Reportable before the 31st March, but the Salary Packaging company we use said it just has to be done before you issue Payment Summaries. Whats the impact of entering it during an April or May pay run? They have just issued me with the grossed up amounts 2 weeks after the 31st March.
(Edited)
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Leshelle

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Also John, is there somewhere I can select "Yes" for the FBT exempt check box for Payment Summary? Or does it tie in with having used tax tracking type : "Reportable Fringe Benefit - tax exempt" code for the reportable amount.
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John G, Information Support Analyst

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Hello Leshelle,

As the FBT year is 1 April to 31 March, you must enter the FBT amount before 31st March for it to appear in this financial year's Payment Summary.  Amounts entered after 31st march will appear in the next financial year's Payment Summary.

A new tax tracking category was introduced in the 2017 Tax Table Update to handle FBT (tax exempt) and when this setting is used it will post the amount to the new field for it on the Payment Summary.  See this guide for more details.


regards,
John