What FBT records must employers keep to satisfy ATO requirements?
Records required for FBT
- Calculations.
- Worksheets.
- Employee declarations.
- Elections.
- Invoices.
- Receipts.
- Bills of sales.
- Lease documents.
What records must be kept in order to assess your fringe benefits tax FBT LIability?
These documents must be kept for five years from when the relevant FBT return is lodged. Examples of these records are: all documents you are required to obtain from employees, such as declarations, invoices and/or receipts, bills of sale, lease documents, travel diaries, copies of logbooks, and odometer records.
Are medical expenses subject to FBT?
Health care – Providing flu vaccinations to employees is generally exempt from FBT because it is work-related preventative health care. However, health care treatment is only exempt from FBT if it is provided to your employees at your workplace or adjacent to your worksite.
What are the four requirements of the ATO for record keeping for a business?
You must keep all your business records for five years, including tax invoices, receipts, salary and wages records, tax returns and activity statements, and super contributions for your employees.
How do you record FBT?
To record the FBT Liability – process a general journal Debiting 6-xxxx (FBT Expense) and Crediting 2-xxxx (FBT LIability).
How do you record fringe benefits?
When recording wages paid, include fringe benefits paid to your employees, as a debit. Subtract your total credits from your total debit to get your net payroll payable amount. Make a separate journal entry to record your expenses as an employer as a debit.
How do you account for FBT?
Create an account called FBT Payable in the Liability area of your Account List (preferably close to your GST or ATO liability accounts). Select “Other Current Liability” as the Account Type. The account number should be 2-xxxx.
What is subject to FBT?
FBT is paid by employers on certain benefits they provide to their employees or their employees’ family or other associates. FBT applies even if the benefit is provided by a third party under an arrangement with the employer. FBT is separate to income tax and is calculated on the taxable value of the fringe benefit.
What is included in FBT?
FBT is a tax that employers pay on benefits paid to an employee (or their associate, such as a family member) in addition to their salary or wages. FBT is calculated on the taxable value of the benefits you provide. This is separate to income tax.
How far back can the ATO audit?
How far back can the ATO audit you in Australia? For most taxpayers with simpler tax affairs, the ATO can usually audit you for the last two or three financial years. However, depending on your circumstances, longer time limits may apply.
How is FBT calculated?
How an FBT liability amount is calculated. There is an additional calculation we are required to complete to work out how much FBT is outstanding for a vehicle. The calculation is: Taxable Value x Gross-Up Rate x FBT Rate.
