To calculate the taxable value of fringe benefits, the entity must collect information in relation to the benefits provided.
Information on fringe benefits is generally collected from:
- salary packaging providers (in the case of packaged benefits)
- fleet managers
- work areas that maintain records of expenditure reimbursed or paid by the entity
- details contained in the general ledger.
Entities should establish procedures to identify where the information will be collected from and determine the form in which the information is to be provided.
Salary packaging providers and other work areas
Entities should liaise with the salary packaging provider and other work areas to agree on the process and timetable for the provision of the fringe benefit data.
Review of the general ledger
A number of Australian Government entities use the integrated credit management system (iCMS) for managing corporate credit cards.
Generally, under the iCMS, expenditure will be incurred using a corporate credit card and this will be coded to a clearing account. At the end of the month, each work area will be responsible for transferring the expenses from the clearing account to the correct general ledger code.
As part of this process, staff should be requested to enter details in the expense description to help the FBT staff review general ledger codes.