How to enter the FBT onto an employee’s record for STP or Payment Summary

Legacy KB ID: 5148

Question

How do I enter the FBT amount for an employee’s record for STP or Payment Summary

Answer

We offer the following solution as one way of handling the FBT situation.  Users should consult with their Accountant on the best way to handle FBT in their accounts. 

 

FBT can be entered as a one-off entry to the employee, either as part of a normal pay or as a separate transaction.  The entry must be dated before 31st March for it to appear on this financial year’s payment summary.

The amount entered must be the grossed up value of the FBT benefit at a tax rate of 46.5% (47% from 1/7/2014).  That is, the benefit divided by 0.535 (0.53 from 1/7/2014).

It is assumed that the actual expenditure for this non-cash benefit has been accounted for elsewhere in the accounts. 

 

There are two parts to the process:

 

FBT contribution

Payroll type:  Addition

Payroll Expense Account: Payroll Expense:FBT grossed up value

Tax Tracking Type:  Fringe Benefits Tax

Taxes:  None

Amount:  eg 10,000.00

 

FBT Deduction

Payroll Type:  Addition (Used as negative)

Payroll Expense Account: Payroll Expense:FBT grossed up value

Tax Tracking Type: None

Taxes: None

Amount:  eg -10,000.00

 

Enter these items in the Additional payroll items section of the pay. 

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.

 

 

Need more help?

Ask the Reckon Community at: https://community.reckon.com/reckon.

 

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