Cimplico Workpapers is primarily designed for annual compliance but can also be used to manage Fringe Benefits Tax (FBT) workpapers.
ℹ️ Note: We are currently in the process of designing our next suite of calculation templates which will include FBT. Until these are released, we have set out the following suggestions for how you can best compile and manage your FBT workpapers in Cimplico.
Firm-Level Processes
1. Develop an FBT procedure template
Create a procedure template to help standardise the FBT process. This should be generic to the job as a whole. For instance:
Confirming an engagement agreement is in place.
Preparing a payment slip if tax is payable.
Drafting the FBT letter.
Ensuring required minutes are signed.
2. Develop an FBT checklist template
Firms should establish an FBT checklist which can be used for schedules in the 'Other Schedules' section of a workpaper. The below are some ideas of how report codes / tags you could utilise:
Checklist Code | Checklist Category |
FBT.CAR | Car fringe benefits |
FBT.LOAN | Loan and debt waiver fringe benefits |
FBT.EXP | Expense payment fringe benefits |
FBT.HOU | Housing fringe benefits |
FBT.LAFH | Living-away-from-home allowance |
FBT.AIR | Airline transport |
FBT.BOA | Board fringe benefits |
FBT.ENT | Entertainment transactions |
FBT.PAR | Car parking |
FBT.PRO | Property fringe benefits |
FBT.RES | Residual fringe benefits |
FBT.ELI | Entity eligibility, NFP rules |
FBT.EXE | Reductions and exemptions |
FBT.CALC | Final FBT calculations |
You could also categorise the checklist items by categories such as:
Reports – Xero reports or third-party reports required
Minutes – Minutes or resolutions required to be signed by the client
Client Confirmations – Emails and discussions required from the client
Other
Workpaper-Level Processes
3. Create your workpaper
Firms should create an FBT workpaper with the following details:
Period end date at the end of the FBT year (31 March 20XX) to organise workpapers efficiently and for better reporting.
The FBT checklist and procedure template assigned.
4. Decide whether to include the trial balance
A trial balance can be added, but it imports data from the financial year (starting 1 July), not the FBT year. While useful for verifying specific balance sheet accounts and attaching documents, it may not align with FBT reconciliation needed for expense and revenue accounts.
5. Creating blank schedules in other schedules
The main basis for your workpaper can be then various schedules in Other Schedules. These should be tagged with the correct tag that will link it to the checklist template your firm has created.
The schedules can then be used as normal. Such as for:
Internal comments and client queries.
File attachments for supporting documents.
Custom spreadsheets where calculation templates are unavailable.
