Important Visipay Information for Working Holiday Makers & FBT exemption under s57A
Sybiz Visipay EOFY 2016/17 Working Holiday Makers & FBT Exemption
Please be advised that for customers on Sybiz Visipay that have any of the following scenarios, you must be on version 16.10 before commencing EOFY procedures.
- Have you employed Working Holiday Makers during the 2016/17 financial year?
- Are you claiming an FBT exemption under s57A of the FBTAA?
- Do you pay Pension or Annuity recipients through Sybiz Visipay?
If you’ve answered ‘no’ to all of the above then you will have a ‘business as usual’ financial year end process providing you are using at least Sybiz Visipay 15.20.
If you do have any of these scenarios then you will need to contact PBT as soon as possible and advise us. In addition to this can you please ensure you complete the following steps after upgrading to 16.10:
Step 1 – Check the new ‘Income Type’ field in employee records (Employment tab).
The Income Type is set to ‘Salary or Wages’ by default but you may need to change it to ‘Working Holiday Maker’ or ‘Pension or Annuity’ if required.
Note: Only Working Holiday Makers that received at least one pay after 31 December 2016 must have the ‘Income Type’ changed from ‘Salary or Wages’ to ‘Working Holiday Maker’.
Step 2 – Check your Working Holiday Makers to see if any of them received payments both sides of 31 December 2016. If ‘yes’, refer last page for additional instructions. If ‘no’, read on.
Step 3 – Are you claiming a FBTAA s57A exemption? If ‘yes’, you will need to ensure the correct, grossed-up amounts are recorded in the Balances section of each employee’s record. There are fields to record both exempt (57A) and non-exempt reportable fringe benefits. These fields are included in the fields that can be exported and imported if numerous employees require updating.
In the event that an employee received reportable fringe benefits that are both exempt and non-exempt you can split the amounts accordingly into both boxes on the employee’s record. These employees will receive two payment summaries.
For future years, Fringe Benefits pay items can now be configured as Reportable (57A).
Step 4 – Unless you need to refer to further instructions for Working Holiday Makers you’re all set to lodge your Payment Summary Annual Report (empdupe) and produce Payment Summaries at the end of the financial year.
Working Holiday Makers – Additional Instructions
These additional instructions are for employers who during the 2016/17 financial year made payments to working holiday makers (holders of visa subclass 417 or 462) where at least one employee was paid either side of 31/12/2016 (eg they were employed from October 2016 to February 2017).
In such cases, it is necessary for relevant employees to receive 2 payment summaries and have two separate records reported to the Australian Taxation Office in the Payment Summary Annual Report (empdupe). Sybiz will need to amend your Sybiz Visipay database to enable this to occur. This process can occur at any time after upgrading to Sybiz Visipay 16.10 and prior to lodging payment summaries. You do not have to have completed the pays for the financial year.
- Do not roll the year
- Ensure all relevant employees are flagged with the Income Type of Working Holiday Maker
- Contact Sybiz to book a remote access time slot for your database to be prepared.
- All employees that are marked as a working holiday maker with pays between 1 July 2016 & 31 December 2016 and with pays on or after 1 January 2017 will have a duplicate employee record created; the relevant payslips will be migrated between the 2 employees with one employee marked as salary & wages and terminated on 31 December 2016. The other employee will remain as a working holiday maker with payslips from 1 January 2017.