As you know, the FBT year is 1 April – 31 March and this can sometimes cause confusion if for example an employee was terminated, or they simply didn't have any earnings in the current FY - how will you report RFB for them, in an STP event, if the employee isn't in the event? Let me show you...
There are a couple of points of confusion so each is covered:
- which FY do you report RFB in
- how do you report RFB for an employee who does not show up in your finalisation event
Which FY do I report RFB in?
I think the simplest way to think about it is that if the FBT year is April-March, you will report amounts paid in that year in the financial year ending June in the same year as the March FBT year.
Meaning, the reportable fringe benefits amount on your income statement or payment summary for the year ending 30 June 2022 would be the grossed-up taxable value of the reportable benefits provided between 1 April 2021 and 31 March 2022.
Here are some other examples to illustrate:
RFB applicable to any date between 1 April 2020 – 31 March 2021 should be reported in the 2020-21 FY.
RFB applicable to any date between 1 April 2021 – 31 March 2022 should be reported in the 2021-22 FY.
RFB applicable to any date between 1 April 2022 – 31 March 2023 should be reported in the 2022-23 FY.
How to report RFB for an employee who does not show up in the finalisation event
An employee who has been terminated in the pay run has already been marked as Is Final in the pay event created from that pay run, so it's not surprising they don't show up in a finalisation event, and you cannot add them here.
Similarly, an employee who's not been paid any earnings in the financial year you're finalising will obviously not show up in the finalisation event.
So, you have two options for adding RFB for an employee who isn't in your finalisation event, you can do it in either an update event or an amended finalisation event.
Here are some helpful hints and screenshots to assist you with adding an employee to the event of your choice and then add the RFB.
- In an update event via STP Phase 1 (30/06/21 and prior) click on the 'Actions' > 'Add employee' button: .......then enter the amount for each employee by clicking on the edit (pencil) icon to open the field, enter the grossed up amount and then click on the save (tick) icon.
- In an update event via STP Phase 2 (from 01/07/21 onwards) click on the 'Actions' > 'Add employee' button:
.......then select 'Actions' > 'Enter RFB amounts' and enter in the year-to-date RFB amounts for each employee, then select the 'Save' button when finished.
- In an amended finalisation event - keep in mind you won't have the option to create an amended finalisation event until after you've lodged your finalisation event - click on this link to an article that will walk you through creating the amended finalisation event, then you can either select the appropriate employee from the drop down list... or simply type their name in the Amended Employees field... then step through the wizard to the Enter Reportable Fringe Benefits page
Prior to 16 July 2021 there were an additional 2 sub-settings which separated out the type of organisation and whether or not employees were entitled to a separate cap for salary packaged entertainment benefits. These have both been removed as they do not impact whatsoever how RFB amounts are reported for employees via STP (or payment summaries for that matter) and so were redundant. As a result, the following will also occur:
- Any existing lodged STP events that did not have RFB amounts reported will only have one RFB column (called “RFBA”) displayed in the event;
- If any existing lodged STP events have RFB amounts reported in the ‘RFBA – Entertainment’ or ‘RFBA – Other’ column, the applicable RFB column will remain in the event as will the amounts previously reported, that is, previously entered RFB amounts will not be lost as a result of this change;
- As per new STP events created moving forward there will only be one column for RFBA.
As usual, don't hesitate to contact our support team in the usual way if you have any questions or concerns about this process.