Workpapers

Loan Workpaper

A loan fringe benefit arises when an employer makes a loan to an employee and there is an obligation to repay any part of the loan. You can upload a set of transactions for a loan, based on the loan ID. The employee will make repayments, so you should add these to the schedule. The interest is calculated on the reducing balance.
You can use the Loan workpaper to do the following:
  • Generate a loan schedule.
  • Upload a loan benefit.
  • Upload a loan schedule.
To open the Loan Benefits workpaper, select
Benefits
, then
Loans
 from the navigation bar.

The Workpaper Interface

ONESOURCE ;Fringe Benefit Tax provides several features that help you find information and let you organise your workspace so that it works best for you.
Customising the Grid
Some columns are hidden by default, and you can select the columns you want to show or hide. To show a hidden columns select the gear icon in the upper right corner and check the checkboxes next to the columns you want to show.
You can also move and resize columns.
Toolbar Ribbon
The icons on the toolbar ribbon above the workpaper provide options for working with the workpaper.
  • Delete:
     Select one or more rows in a workpaper and use the
    Delete
     button to delete individual rows.
  • Delete All
     : Use the
    Delete All
     button to delete all rows on all pages of this workpaper.
  • Schedule:
     Select an item on the grid, then select the
    Schedule
     button to open the Loan Schedule wizard.
  • Upload:
     If you select the
    Upload
     button, a menu opens that lets you upload the workpaper or loan schedule.
  • Select All:
     Use the
    Select All
     button to select all rows in the workpaper.
  • Save Layout:
     If you have customised the order of your columns, or have shown or hidden certain columns, you can use the
    Save Layout
     button to lock these choices.
  • Reset Layout:
     If you want to revert to the default column ordering and display, use the
    Reset Layout
     button.
  • Attachments:
     You can select the
    Attachments
     button to attach document, such as supporting evidence or reference information. You can also use this button to download or delete and attachment.
  • Export:
     Use the
    Export
     button to export workpaper data.
  • Refresh:
     Data is validated as you enter and is saved when you select the
    Refresh
     button or move to the next row.
  • Recalculate:
     The software automatically calculates and applies in-house benefit reductions, exemptions and rebates to individual benefits, and displays these in the benefit workpapers dynamically. If you have made changes to a workpaper, select the
    Recalculate
     button to force recalculation of changes to this benefit only. If you have large amounts of data recalculating can save time.
  • Freeze Columns:
     You can freeze columns to the left of view by selecting a column and then selecting the
    Freeze Columns
     button. All rows to the left of the selected row will stay in view while all columns to the right will move with the scroll bar.
  • Audit:
     Select the
    Audit
     button to show the user, time, and date stamp of any manual changes in the workpaper.
  • More
     : ;Select the
    More
     button to show additional options for this workpaper.

Workpaper Details

Workpaper tab details
Column name
Description
Loan ID
Auto-generated or enter your own identifier - max of 20 characters
note
Although it is possible to enter duplicate loan IDs, we recommend that you maintain unique Loan IDs.
Scheduled Loan?
If you are entering loan repayments using the loan transaction schedule feature, select
Yes
 . Otherwise leave this field as
No
 and enter a value in the
Loan benefit amount
 field.
Employee
The employee information is mandatory and must exist in the Employee workpaper.
Cost Centre
The cost centre code and name will default to the employee's cost centre as allocated in the Employee workpaper or to the default cost centre for non-reportable benefits.
State
Defaults to the employee's default state in the Employee workpaper. You can use the dropdown menu to select a different state.
Description
A short description of the benefit provided (max 255 characters).
Original Loan Amount
Enter the loan amount. This amount will roll forward for historical purposes.
Current Year Loan Start Date
Enter the date the loan began within this FBT period.
Original Loan Start Date
This date defaults to the
Current Year Loan Start Date
 and can be edited. This date will roll forward as an historical loan start date in subsequent FBT periods.
Loan End Date
Provide the date the loan was expired (forgiven) or paid out. This value will automatically populate if a scheduled loan balance reduces to zero during the FBT year. Loans with an end date will not roll forward to the next FBT period. A debt waiver benefit may arise in certain circumstances when a loan is forgiven.
Current Year Opening Balance
This value will equal the
Original Loan Amount
 in the first year of the loan or will be the amount still owed on roll forward to the next FBT year.
Repayments
For a scheduled loan with repayments the total of the repayments are shown here.
Closing Balance
For a scheduled loan with repayments the amount still owed is shown here.
Benchmark Interest Rate
This is the statutory benchmark interest rate for the active FBT period.
Statutory Interest
This is the notional amount of interest calculated at the statutory benchmark interest rate for a scheduled loan on the daily balance of the loan, that is the balance of the loan at the end of a day.
Actual Interest Rate
This is the actual interest rate charged on the loan and would be less than the statutory benchmark interest rate.
Actual Interest
This is the amount of actual interest calculated for a scheduled loan where an actual interest rate has been entered.
Loan Benefit Amount
Enter the gross taxable value of the loan benefit. Mandatory if a non-schedule loan. For scheduled loans this value will be calculated.
Business %
This is the percentage of the benefit which relates to business. Defaults as 0.
Business Amount
This is calculated as value of the benefit multiplied by business percentage.
Exempt Benefit?
Defaults to
No
. Can be toggled to
Yes
 in cases where you have determined the benefit is FBT exempt.
RFBA Excluded?
Defaults to
No
. Can be toggled to
Yes
 in cases where you have determined the benefit is an excluded RFBA.
Concession Amount
Where a concessional amount reduction is available enter the value in this column.
Value of Reductions
This is a calculation of the total of the reductions that can be applied on this row. Used for reconciliation with the FBT form.
Taxable Value
This is a calculation of the taxable value for this benefit row. Used for reconciliation with the FBT Form.
Grossed up Taxable Value
Calculated value depending on gross up rate selected
Reportable Value
Calculated value of reportable fringe benefits taxable value for this benefit. The value shown is capped at the applicable threshold and will display 0.00 until the employee exceeds this cap. The capping test is across all relevant benefit workpapers.
Tax Payable
Calculated value of FBT payable for this benefit.
Exemption Applied, $17,000 Cap
Represents the amount of 17,000 cap used.
Grossed up Taxable Value, $17,000 Cap exceeded by
Represents the amount by which a person exceeded their 17,000 cap.
Tax Payable $17,000 Cap Applied
Represents FBT payable as a result of exceeding the 17,000 cap.
Exemption Applied, $30,000 Cap
Represents the amount of 30,000 cap used.
Grossed up Taxable Value, $30,000 Cap exceeded by
Represents the amount by which a person exceeded their 30,000 cap.
Tax Payable $30,000 Cap Applied
Represents FBT payable as a result of exceeding the 30,000 cap.
Standard Category
Can select standard categories created for this benefit workpaper. Defaults as blank.
Reporting Entity
Defaults to the currently filtered reporting entity code and name
Worked example
An employee has applied for a loan of $15,000. The employer has approved the loan for a period of 2 years with interest of 4.00%, principal of $15,000 and repayments of $675 per month. The loan commences 1-Apr-2021, repayments commence 1-May-2021. The statutory (benchmark) interest rate for the 2021-2022 FBT period is 4.52%.
The benefit detailed would be populated in the summary workpaper as follows:
  • Loan ID: 1
  • Scheduled Loan:
     ;If the
    Scheduled Loan
     selection is
    Yes
     the
    Loan Benefit Amount
     field (gross taxable value) is calculated with reference to the schedule of transactions. If
    No
     is selected, the
    Loan Benefit Amount
     field is editable and you enter your own calculated value for the loan. (In other words, you are not using the schedule of transactions to automate the calculation of the loan benefit value).
  • Employee ID:
     ;10107
  • Original Loan Amount:
     $15,000
  • Current Year Loan Start Date:
     ;01/04/2021
  • Repayments:
     $0.00. Be aware, if no repayments are made within six months an additional deferred loan may arise which would be added as a new separate loan row in the workpaper. The program doesn't calculate deferred loans. You would need to calculate this manually and select
    No
     for Scheduled loan.
  • Actual Interest Rate:
     ;4.00%
note
The initial Loan Benefit Amount is $78 based on a full year (if no repayments on the principal).
  • This is calculated as the statutory interest: ($15,000 x 4.52%) x (365/365) = $678
  • Less the actual interest payable on the loan: ($15,000 x 4.00%) x (365/365) = $600.00
  • Taxable value = $78 ($678-$600)
Checklist tab details
Checklists present questions that you should answer or issues that you should consider while preparing your FBT return. At the end of each checklist, you can click into the information to add comments or sign off on the workpaper.
Notes tab details
The
Notes
 tab provides an area where preparers and reviewers can record information. The format bar lets you apply styles and formatting to notes, similar to applications such as Microsoft Word. You can also insert images and hyperlinks and can print notes.

This article applies to:

  • Product: ONESOURCE Fringe Benefits Tax
  • Subject: Workpapers

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