This article explains how to amend Reportable Fringe Benefits Amounts (RFBA) for Single Touch Payroll (STP) finalisation.

Before you read: 

• Target audience: This article is for System Administrators, Payroll Administrators, Payroll Managers, and users responsible for managing payroll. 
• Plan restrictions: This information is relevant to Australian customers using Deputy Payroll (AU).

This article covers

• Understanding Reportable Fringe Benefits Amount (RFBA)
  • Obtaining the Current Reported RFBA
  • RFBA Class
• STP reconciliation: RFBA verification
  • Verify both figures for Salary Sacrifice
• How to calculate any adjustments needed
• How to enter the adjustment
   

Understanding Reportable Fringe Benefits Amount (RFBA)

At the end of the Fringe Benefits Tax (FBT) year or financial year, your accountant, bookkeeper, or salary packaging provider may give you a Reportable Fringe Benefits Amount (RFBA) for one or more employees. You may need to update these figures at the end of the financial year for your STP finalisation to be accurate. This guide explains how to enter a RFBA adjustment amount in Deputy Payroll. 

Before you begin this process, make sure you know the Grossed-up RFBA for the employee for the relevant FBT year (1 April to 31 March).
 

Obtaining the Current Reported RFBA

If RFBA has already been recorded during the financial year, check the current reported amount before entering an adjustment. 

To find out the current RFBA figure reported through STP data, you should download the current list of RFBA declared via STP after you have finished your last pay run of the financial year.

To do this, open Deputy Payroll, and navigate to:

• Payruns → Payslip  → STP Lodge→ Normal Payrun → CSV Export or Review Data to view on web browser. 

Note: You can download this report as a CSV file. 

In the Employee STP Data report, check the relevant RFBA (Fringe) and salary sacrifice (Salary Sacrifice) amounts for the employee and reconcile to the amounts your accountant has provided as required. Take note of the Class type as this is important to replicate when making any adjustments. 
 

RFBA Class

Deputy Payroll has four (4) RFBA Class types when creating an expense item:



When processing fringe benefits as expenses through Deputy Payroll, the fringe benefits Class chosen will determine how the FBT expense will report in STP. See the table below: 

Definition of STP types 

STP reconciliation: RFBA verification

You can verify reported totals based on the RFBA Class used:

Verify both figures for Salary Sacrifice

For salary sacrifice RFBA, checking only the Fringe amount is insufficient. You must confirm both the RFBA amount (X or T) and the Salary Sacrifice Type O total when reporting.

If the salary sacrifice figure is omitted, the RFBA may appear correct while the overall sacrifice total remains inaccurate.

See the ATO article on Relationship between reporting RFBA and salary sacrifice type O.
 

How to calculate any adjustments needed

Use the amount already reported from your reconciliation to calculate the adjustment:

An example of this calculation:

How to enter the adjustment

A RFBA amount is a reporting amount only. It is not an ordinary wage payment to the employee. The RFBA adjustment is best entered into the finalisation (final) Payrun of the financial year. For more information, check our our article on Reporting an EOFY finalisation event to the ATO.

To report the RFBA adjustment amount correctly, Deputy Payroll uses two payslip lines. The payslip lines balance each other out: 

Step 1: View the payslip (pay run) of the Employee

This should be either the last regular pay run you are submitting as the final pay run, or an ad-hoc pay run created specifically as the final pay run. 

You can read more about submitting your finalisation.

Step 2: Add the Grossed-up RFBA amount to the payslip

Use the Add RFBA button to automatically add the payment and expense RFBA items onto the employees payslip.

1. Open the Actions menu on the payslip
2. Click Add RFBA
3. Select Taxable or Tax Exempt
4. Select Salary Sacrifice or Normal
5. Enter the Grossed-up RFBA amount
6. Click Add RFBA

Note: If you are unsure which class to select, confirm with your accountant, bookkeeper, or salary packaging provider.

See the ATO article on Relationship between reporting RFBA and salary sacrifice type O.

Two payslip items will be entered into the payslip: (1) Payments RFBA line and (2) Expenses RFBA line.

Step 3: Check and confirm the Payslip and STP report

Once the RFBA is recorded, the payslip will reflect the following changes:

See the example below: 

After you complete and lock the pay run, you should see the STP amounts updated to reflect the adjustment.

When you're ready, you can proceed with your final STP submission.