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Fringe Benefit Tax (FBT) on BAS and IAS

In March 2018 QuickBooks will start rolling out a new GST experience. This will happen gradually over a period of time. If you can see the View reports menu when you are on the GST centre main page, you are in the classic experience, and if you can see Run Reports menu, you are on the updated experience.

What is Fringe Benefits Tax?

Fringe benefits tax (FBT) is a tax employers pay on certain benefits they provide to their employees – including their employees’ family or other associates.

Some businesses are required to make FBT payments to the ATO (monthly or quarterly), and that amount is normally fixed, but can vary in certain circumstances.

Fringe benefits tax amounts are not calculated by QuickBooks, only reported on the business or instalment activity statement.

For more information about whether FBT applies for your business and how to report FT instalment variances, please consult a tax professional and explore the ATO website links below:

FBT in Classic GST Centre

When FBT is enabled in GST Settings, your BAS form will include a Fringe benefits tax (FBT) Instalment section, an FBT instalment line under Amounts you owe the tax office, and a Credit from FBT instalment line under Amounts the tax office owes you.

Values input in the Fringe benefits tax (FBT) Instalment section will report values directly on the BAS form, but will have no accounting impact post lodgement. Adjustment transactions recorded on line 6A or 6B will increase or decrease the balance transferred to BAS suspense upon lodgement.

Any adjustments created will also be listed in the related section of the GST Detail report for that period. Adjustment transactions cannot be changed, only deleted.

To include an FBT amount to paid on your BAS, record an adjustment on line 6A by clicking the blue Record link on the far right. Include the amount to pay under Adjustment amount, select the Adjustment account, check the Adjustment date and add any memo details as required. Once you Save the adjustment, the amount you owe will then display on your BAS.

To include FBT credits, repeat the same process as above to record and adjustment on line 6B.

FBT in Updated GST Centre

When FBT is enabled in GST settings, QuickBooks will create a FBT liabilities account, and include FBT in the lodgement flow for IAS (monthly) or BAS (quarterly) based on the reporting frequency selected.

If you have Enabled BAS E-lodgement for QuickBooks, your FBT instalment will be pre-populated in the updated filing flow.

To include an FBT amount to be paid expected by the ATO, input the amount under FBT instalment during the Other taxes filing stage.

To adjust the instalment amount or include an FBT credit, tick the I need to adjust this amount box and include the additional information as required by the ATO.

When your activity statement is lodged, QuickBooks will write a journal entry against the FBT Liabilities payable and the ATO Clearing Account.

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