We have employees who are religious practitioners and receive Exempt Benefits (Section 57, Fringe Benefits Tax Assessment Act 1986).
Are these reported via STP2, and if so, how?
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Hi @cheryljj
You have to report salary and wages, PAYGW and super liability in STP. It's about payments subject to withholding.
Fringe benefits tax rules may stipulate that some payments or non-cash benefits you remunerate your employees with is exempt from fringe benefits tax and that means there's no RFBA to report. Reportable Fringe Benefits Tax Amount. That's not the same as the salary sacrifice amount.
Sometimes, you have salary packaging where you would pay a total amount in cash, but you and your payee agree to reduce the cash payment to provide non-cash benefits. In this situation, you report the "total amount" of the package as Gross (or other separately identified amounts if they have paid leave or overtime etc) and you also report the cash value (what would have been paid as cash to the payee) of the non-cash benefit as Salary Sacrifice - O (other employee benefits).
Before you finalise at the end of the year, if the payee has any RFBA, you would report that (the grossed-up value of the cash value of the non-cash benefit) if it is in excess of the threshold of $2,000 (threshold for reporting).
I think you may be confused about the difference between the non-cash benefit amount and the RFBA amount? The ATO has excellent STP2 employer guidance on this.
I hope that helps - Deanne
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Hi @cheryljj
You have to report salary and wages, PAYGW and super liability in STP. It's about payments subject to withholding.
Fringe benefits tax rules may stipulate that some payments or non-cash benefits you remunerate your employees with is exempt from fringe benefits tax and that means there's no RFBA to report. Reportable Fringe Benefits Tax Amount. That's not the same as the salary sacrifice amount.
Sometimes, you have salary packaging where you would pay a total amount in cash, but you and your payee agree to reduce the cash payment to provide non-cash benefits. In this situation, you report the "total amount" of the package as Gross (or other separately identified amounts if they have paid leave or overtime etc) and you also report the cash value (what would have been paid as cash to the payee) of the non-cash benefit as Salary Sacrifice - O (other employee benefits).
Before you finalise at the end of the year, if the payee has any RFBA, you would report that (the grossed-up value of the cash value of the non-cash benefit) if it is in excess of the threshold of $2,000 (threshold for reporting).
I think you may be confused about the difference between the non-cash benefit amount and the RFBA amount? The ATO has excellent STP2 employer guidance on this.
I hope that helps - Deanne
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