Reportable Fringe Benefit Tax – FBT

Reportable Fringe Benefit Tax – FBT

FBT Exempt

If your organisation or you have an employee that is exempt from FBT, you will firstly need to flag this with in your CloudPayroll account. To enable this, please email help@cloudpayroll.com.au asking us to enable FBT Exemption for your organisation (name and number). Once you receive confirmation from CloudPayroll that this has been enabled, you will be able to apply this change as follows.

If the whole organisation is FBT Exempt:
  1. Go to Setup > Organisation > Defaults
  2. Tick the box that says Default to FBT Exempt?, this will ensure all new starters have this enabled by default.


Once enabled, you will need to update all existing employees, 
  1. Go to People > View People 
  2. Click on the first persons name
  3. Scroll down to the Tax Details and click on View advance Tax Details 
  4. At the bottom of the advanced tax details, you will now see the option to tick the FBT Exempt? box. 
  5. Tick this and Save the page.
  6. This needs to be done for all employees, inactive employees included. 
Note: If you have a large number of employees to update, please email help@cloudpayroll.com.au with the employee name and IDs on an excel file and we can assist. 

Reporting FBT amounts

How to report your reportable FBT to the ATO, employees will not see this transaction on their payslip.
Manually adding FBT amounts to a payroll:
  1. Go to Payroll > .1 Open to open either your normal payroll, or a one-off payroll. Please note, normal processing fees will apply in an one-off payroll, even if no payments are being made.
  2. Click on the first employee that needs FBT added.
  3. Add a new transaction as follows:
    1. Quantity is 1
    2. Element is FBT - Fringe Benefits Tax
    3. If costing is enabled, this figure is not reported on your General Ledger Report, so a cost centre is not required
    4. Enter the amount required to be reporting in the Rate box
    5. Click +Add
  4. This transaction will now show below on the timesheet. 

Uploading via a file into the payroll:
  1. Open a blank excel spreadsheet.
  2. Create a payroll upload file as follows (no headings requires on the file)
    1. Column A - this will be the employee ID
    2. Column B - enter FBT
    3. Column C - enter the Quantity, so 1.
    4. Column D - leave blank
    5. Column E - enter the Rate, this will be the amount you want to report to the ATO for this employee.
  3. Once you have created and saved the file, go to Payroll > .1 Open to open either your normal payroll, or a one-off payroll. Please note, normal processing fees will apply in an one-off payroll, even if no payments are being made.
  4. Go to the Upload tab
  5. Click on Choose File to find and select the file you created above
  6. Finally click on Upload File to upload this information into the payroll.
The payroll upload file will look similar to this:


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