Manage benefit and pooling categories

TABLE OF CONTENTS

• Overview
  • Default benefit categories
• Pooling categories
• Adding and editing
  • Manually add a benefit category
  • Automatically add a benefit category during import
  • Editing benefit categories
  • Deleting benefit categories
• Troubleshooting
  • Can not edit benefit category
  • Can not delete benefit category
• What's next?

Overview

Managing benefit and pooling category settings is important due to legislative rules governing de minimis and pooling calculations.

When a new entity is created, a default set of benefit categories is provided. These default categories can be edited, or deleted. New categories may also be automatically added during import by specifying a new benefit category, “Description”, in the import data.

Because new benefit categories can be added during import, it is essential to review these settings before each return filing.

Default benefit categories

Default benefit categories are automatically linked to pooling category settings. Default categories can be deleted, their names and pooling category settings edited, and new ones created. The default benefit and pooling categories are:

• Employment-related loans
• Funeral trusts
• Life or health insurance
• Motor vehicles
• Sickness, accident, or death
• Subsidised transport
• Superannuation scheme
• Unclassified

Pooling categories

Pooling categories help ensure compliance with tax rules governing de minimis and pooling calculations. 

Each benefit category is assigned a pooling category, either manually or automatically during import. By default, imported categories are set to “Unclassified” and should be reviewed each quarter to ensure the correct pooling category has been applied. 

The Income Tax Act allows six pooling categories to be pooled or attributed based on annual benefit thresholds. These decisions are applied consistently across all employees in each category and influence outcomes across all categories. 

Adding and editing

Manually add a benefit category

1. From the entity's FBT return, in the navigation bar select Workpapers > Benefits.
2. From the Benefits screen (any quarter), select New.
3. Enter the name of the new benefit category (e.g. Southern Cross).
4. Select the pooling category the benefit belongs to (e.g. Life or health Insurance).
5. Select Save.

Automatically add a benefit category during import

When benefits are imported and a Description not already on the benefit categories list is used, a new benefit category is automatically added. This enables the quick addition of new categories during import. 

Imported benefits default to the Unclassified pooling category setting, which may not always be correct. Therefore, a review of benefit categories and their settings should be conducted each quarter before return filing.

Edit a benefit category

1. From the Benefits screen, select the Settings cog next to the benefit category.
2. Edit the name and/or pooling category, as required.
3. Select Save.

Deleting benefit categories

A benefit category can only be deleted if there are no benefits associated with it in any locked period across any tax year. This safeguard helps prevent accidental deletion of data from prior periods.

1. From the Benefits page, select the Settings cog next to the benefit category.
2. Select Delete.

Troubleshooting

Cannot edit benefit category

This occurs when a benefit category is appearing in a locked quarter. You will need to unlock the quarters in the tax year before editing. 

1. From the Navigation bar, select the three ellipses > Settings.
2. In the Return Lock column use the toggles to unlock any quarters. 

Cannot delete benefit category

A benefit category can only be deleted if there are no benefits associated with it in any locked period across any tax year.

Benefits included in the category will need to be reassigned by a bulk edit, or deleted, before the benefit category can be deleted. 

What's next?

Add or import benefits

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