Reduce time, costs and compliance risk while increasing efficiency and accuracy.
Automating Fringe Benefits Tax
Workforce Automate’s Fringe Benefits Tax (FBT) solution consists of two modules, an end-to-end fringe benefits tax transaction classification module (Classification module) and fringe benefits tax return preparation and lodgement solution (Compliance module), both of which contain a range of features aimed at elevating an employer’s FBT governance measures. Workforce Automate’s Fringe Benefits Tax modules are available as a Software as a Service offering or as part of an outsourced/hybrid Fringe Benefits Tax Compliance offering.
Key features include:
- Fringe benefits tax return preparation in real time
- ATO electronic lodgement capability
- Benefit category specific workpapers
- Management information
- Reporting and dashboarding
- Governance-enabled analysis
Upload
Benefit specific data is uploaded either directly to Workforce Automate or flows through from the transaction classification.
Review
Data is processed and classified into workpapers which flow through to the fringe benefits tax returns.
Finalise and lodge
Workpaper data prepares the final return for review, signoff and lodgement via integrated workflow functionality.
| Product Functionality | FBT Compliance module | FBT Classification module |
|---|---|---|
| Fringe benefits tax workpaper, return preparation and lodgement - Ability to generate all Fringe Benefits Tax benefit working papers (including RFBA and Payroll Tax reports), fringe benefits tax returns prepared and electronically lodged with the ATO. | ✔ | |
| Fringe benefits tax Data Analytics and Visualisations - pre-configured, integrated and dynamic data analytics and dashboard visualisations, including exception testing allowing the user to identify specific data within an obligation based on established criteria. | ✔ | ✔ |
| Automated classification of general ledger and expense management data, including where applicable, comparisons between 50/50 and Actual methods of meal entertainment taxable value calculation as well as an integrated Minor benefit Exemption Calculation. | ✔ | |
| Ability to create and update rulesets, to be run against your general ledger, expenses and other data at any point or frequency throughout the Fringe benefits tax year. | ✔ | |
| Automatic transfer of transactions from the Classification module to the Workforce Automate Compliance module. | ✔ | |
| Comprehensive product user guide. | ✔ | ✔ |
Comprehensive product user training. |
✔ |
✔ |
Product technical support, maintenance, updates and upgrades. |
✔ |
✔ |
Deep dive into Workforce Automate’s Fringe Benefits modules
Compliance module
Workpaper and return lodgement functionality
Classification module
Transaction classification functionality
End-to-end fringe benefits tax automation process
1. Data extraction
1. Data extraction
Extract data from:
- General ledger accounts
- Expense management system (EMS)
- Unstructured supplementary data sources (e.g. employee master files).
2. Data transformation
2. Data transformation
We undertake a thorough data wrangling and transformation process, which includes:
- Cleansing and sorting
- Anomaly detection
- General ledger data, EMS data and trial balance reconciliation
- Additional data reconciliation checks. e.g. total amount per general ledger account and frequency of transactions per employee.
3. Fringe benefits tax transaction classification
3. Fringe benefits tax transaction classification
Conduct fringe benefits tax general ledger and expense management system transaction classification utilising PwC’s Workforce Automate’s Fringe Benefits Tax Classification module to undertake:
- Application of business-specific rules such as keywords, vendors and dollar value thresholds
- Review of non-fringe benefits tax sensitive general ledger accounts
- Minor benefit analysis
- Updated GST/income tax deductibility.
4. Fringe benefits tax workpapers and return lodgement
4. Fringe benefits tax workpapers and return lodgement
Outputs are automatically mapped to populate into our fringe benefits tax benefit specific workpapers, automatically flowing through to the final fringe benefits tax returns which can be viewed in real time.
Workforce Automate’s electronic lodgement capability allows users to lodge directly with the ATO, removing any risk of transposition errors with direct lodgement via Standard Business Reporting.
5. Additional automation offerings
5. Additional automation offerings
Depending on your needs, we leverage additional tools from our Fringe Benefits Tax Automation suite, including:
- Car parking application
- Fleet management technology
- Fringe Benefits Tax declarations.
Other related Fringe benefits tax technologies
Our car parking application uses boom gate and swipe card data to analyse the number of car parking benefits that have risen during the fringe benefits tax year to determine the most cost-effective calculation methodology for reporting car parking fringe benefits.
With most employers offering flexible/hybrid working arrangements, our car parking application helps you avoid the risk of paying fringe benefits tax on car parking spaces not fully utilised during the year.
PwC has a joint business relationship with a third-party fleet telematics provider that specialises in fleet management solutions, using technology-based products to collect data and deliver useful, actionable insights.
These solutions securely track your fleet and enable employees to effortlessly complete their logbooks via a smartphone app. Additional modules available include carpool bookings, driver safety and fleet optimisation.
PwC’s Fringe benefits tax declarations tool is a simple, automated solution to provide, complete and maintain employee declarations via a mobile device or laptop.
This removes the compliance burden of manually printing, collating and chasing up signed declarations.
Request a demonstration
Follow PwC Australia
Contact us
