BDO New Zealand – Taxlab FBT training

Tuesday 10 August 2021, 12pm – 1pm

This training is exclusively for BDO New Zealand and is available to all staff members across all offices.

We will be hosting a webinar to share how to use our FBT software and help clients manage FBT compliance, including:

  • Uploading client data into software
  • Review analysis and sense checks
  • Automatic attribution calculation
  • Review quarterly tax position and tax return
  • Review annual tax position and tax return
  • Generate cost centre reports
  • Generate client reports and deliverables

Please register below:

2022 Fringe Benefit Tax (FBT) Rates

2022 FBT Rates are Skyrocketing

New FBT Rates

The FBT rate changes came into effect on 1 April 2021: 

  • The single rate has moved from 49.25% to 63.93%; 
  • The alternate rate has increased from 43% to 49.25%; 
  • The pooling rate moved from 42.86% to 49.25%. 

The Impact Is a 30% Increase in FBT

Inland Revenue has advised that around 90% of taxpayers currently use the single rate to calculate their FBT. If those same taxpayers continue to use the single rate for 2021/2022 tax year, they will see a significant 30% increase in their FBT liability.

How to Minimise the Increase

Employers can perform an FBT attribution calculation in the final FBT quarter (1 January to 31 March each year). This means benefits provided over the course of the year are taxed at each employee’s marginal tax rates per their income level.

It will be more important for taxpayers to use attribution for the 2021-22 FBT year in order to keep FBT cost increases to a minimum. This is especially the case where there are a large number of employees earning under the top tax rate threshold of $180,000 p.a.

Example:

Please check out the table below for a simple illustration of how the tax liability differs between single rate and attribution in 2021 and in 2022.

EmployeeBenefitPayBenefit
Value
2021
Single Rate
2022
Single Rate
2022
Attribution
JohnMotor vehicle$150,000$8,000$3,940$5,114$3,940
JaneInsurance$100,000$3,000$1,478$1,918$1,478
JimmyGift$60,000$400$197$256$171
Totals$5,615$7,288$5,589

When Should I Start Looking Into This?

Now. In order to be able to perform your attribution calculation in the final quarter of 2021/2022, you need to ensure you have the right data available. This includes knowing which employees have received which benefits and the corresponding value. Further, there are significant cash flow benefits in having the confidence to lock in the alternate rate for the first 3 quarters of the FBT year.

How to Simplify the FBT Attribution Calculation

Contact us! FBT calculation software like Taxlab is available to make FBT compliance much easier and more robust while helping you save tax costs. We would be happy to organise a demo for you. Otherwise, you can also get in touch with your tax adviser to evaluate your options based on your requirements and resources.

FBT Resources

Online

Webinars

Taxlab FBT Software

2021/2022 FBT Update – Free Webinar

The new FBT rates for 2021/2022 are:

  • Single rate = 63.93% (previously 49.25%);
  • Alternate rate = 49.25% (previously 43%); and
  • Pooling rate = 49.25% (previously 42.86%).

After positive feedback from our earlier presentations, we are hosting one final webinar before the first 2021/22 quarterly calculation is due.


PwC and Taxlab – 17 June 2021 – Webinar registration

Taxlab are pleased to have Josie Goddard of PwC to talk us through the technical FBT changes and help you understand the different options for calculating FBT payable. Josie will use a case study to show the impact of the higher 63.93% FBT rate.

To close, we will showcase how FBT software provide a real opportunity for employers and advisers to save tax, better manage cashflow and efficiently complete the FBT return with automated de minimis, attribution and pooling optimisation as well as sense checks, reports and analytics.

Register your interest now.


Speakers

Josie Goddard, PwC New Zealand

Josie is a Senior Manager in PwC’s employment tax practice and brings 8 years of experience in advising large employers. She has led many payroll reviews focusing on employment taxes and has managed a number of Inland Revenue reviews and audits. Josie leads PwC’s policy submissions in relation to employment tax and was PwC’s lead specialist in relation to the recent payday reporting changes.

Jeremy Dobbie, Taxlab

Jeremy has over 10 years of experience working at PwC NZ, Thomson Reuters and EY UK, and exclusively with tax & accounting technology since 2013. He joined Taxlab in 2019 to help ensure the compliance needs of accountants and tax professionals are understood and connected with the relevant solution.

FBT Trainings 2020

To help during lockdown, this year we are offering free online FBT software training. We also highlight some excellent FBT technical sessions hosted by our partners.

Free Taxlab FBT software training

If you are new to Taxlab, or would like a refresher, please register today for a free online training:

Each session is 1 hour long, qualifies for CPD hours and covers the fundamentals of Taxlab FBT, including:

  • Importing benefits
  • Managing motor vehicles
  • Importing employee salary data
  • Full attribution calculation and Q4 true-up
  • Finalising and filing FBT returns

FBT technical training

Want to brush up on your FBT technical knowledge or understand the latest employee tax developments in a Covid-19 world?

Our partners are offering some useful FBT technical sessions over the next month:

Taxlab Covid-19 Update

Last updated 3 August 2020

Taxlab service availability: Business as Usual

We activated our Business Continuity Plan as a precautionary measure on 16 March 2020 and tested closure of our Auckland office and London working hub. We have not experienced any issues in service uptime or support availability to date. To help you understand and gain assurance of our business continuity, please see further information below:

  • We provide software-as-a-service and continue our product development and delivery of service through the use of cloud applications. 
  • We have confirmed with external service providers to ensure they too, can continue to deliver to us.
  • We have full-time remote workers, and as such we are highly practised using remote collaboration and communication tools to ensure business as usual.
  • We do not expect any technology bottlenecks should we need all our staff to work remotely.
  • Our team will continue to be contactable via our Support Helpdesk, either via phone (0800 00 1035) or email (support@taxlab.online) and we continue to be committed to delivering high quality customer service. 
  • We thank you in advance for your understanding and patience and note that we will endeavour to respond to queries as soon as possible.

We do not anticipate any significant changes to our business continuity plan or COVID-19 policies but as we navigate this dynamic landscape, any updates are likely to be made on this webpage.

Safety of our people

We have implemented COVID-19 policies across our staff in NZ, Australia and UK. This includes:

  • Halting travel (domestic or international)
  • Declining face to face business meetings or events in favor of virtual meetings where possible
  • Reinforcing good hygiene habits
  • Our Auckland office and London working hub are open to staff and office support services under Government guidelines for safe working, but is not open to clients or suppliers without executive approval.
  • Encouraging all staff to take appropriate precautions in line with government recommendations as we continue to put the safety of each other first.

While we serve the needs of our customers, we will continue to work both at our offices and remotely at home in line with government mandates and advice.

Take care

Our team remains committed to your success. We are well placed to continue business as usual and maintain the software service and support you expect from us.

We wish you, your family and your colleagues, good health and diligent hygiene as we look to overcome uncertain times.