FBT Year Ends on 31 March 2022
The Fringe Benefits Tax (FBT) year is ending on the 31st March 2022. The last thing you want is to realise in early April is that you have exceeded the threshold and find yourself with a FBT liability.
Employers are required to perform a self-assessment of their FBT liability and lodge an appropriate return.
Please review your payroll records and be prepared to make adjustments if necessary.
Keep under the threshold
Salary sacrificing of fringe benefits can be an effective way for Not-For-Profit organisations to boost the salary package of employees. As the FBT liability falls with the employer, it’s important that you make sure the value of your benefits have not exceeded the threshold.
Every now and then, in fact about once in every 11 years a fortnightly payroll calendar will have 27 pays in one year (instead of the regular 26). If that is applicable to you, make sure you stop deductions for that 27th payroll to avoid going over the threshold. Potentially, even a weekly payroll calendar could fall over the threshold. It is always good practice to review payroll and deductions during March, so you know whether you can cruise to the end of the FBT year at the end of this month or do some quick-fast adjustments to ensure that final payroll doesn’t tip you over the threshold and into a FBT bill.
If you have questions in relation to the above, or any other matters, please do not hesitate to contact our office on 1300 620 345.