As employers prepare 2021/22 FBT returns it is normal practice to simultaneously prepare Reportable Fringe Benefits data attributable to individual employees.
Some timely reminders as you go about this task:
- only where an employee has the requisite more than $2,000 in taxable value of Reportable Fringe Benefits (pre gross up at 1.8868) does an amount need to be reported for that employee (grossed up amounts not more than $3,777.60 should not be reported);
- reporting now occurs for most employers through Single Payroll and is visible to employees through their income statement via their My Gov account meaning a mechanism to provide employees with a breakdown of the amount is recommended. This may also include information regarding how to query an amount reported and what is the significance of having an amount included);
- make sure any taxable value attributable to ‘excluded fringe benefits‘ is not taken into account when quantifying Reportable Fringe Benefits per employee – for a detailed list of excluded fringe benefits see section 5.2 of the ATO’s ‘Fringe Benefits Tax – a guide for employers’. Main categories of excluded fringe benefits are car parking, non-salary packaged meal entertainment, pooled cars and ‘remote area’ FBT concessional items);
- the ‘pooled car’ exclusion – where two or more employees have private use of the same ‘car’ during the FBT year the pooled car exclusion may be available meaning whilst the employer may FBT in relation to a car no part of that amount is required to be included when calculating whether an employee has the requisite more than $2,000 in taxable value (pre gross up at 1.8868). Where a motor vehicle is not a ‘car’ for FBT purposes (e.g. one tonne or more load carrying) the pooled car exclusion does not apply meaning where two or more employees use the vehicle any taxable value should be apportioned between them on a reasonable basis;
- section 57A FBT exempt (subject to per employee capping) employers should ensure the taxable value of benefits exempt under the capping rules are included when quantifying Reportable Fringe Benefits per employee – Single Touch Reporting processes require a section 57A employer to identify as such); and
- ensure salary packaged meal entertainment and entertainment facility leasing expenses are included when quantifying Reportable Fringe Benefits per employee.
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