ANTE User Manual

Fringe Benefit

Fringe Benefit setup handles title allowances where the employer pays the Fringe Benefit Tax (FBT) on the employee's behalf. You set the tax rates, a table of grades with monthly allowances, and which employee holds which grade. A Fringe benefit run in Disbursements then creates the payments and the tax each month. For a guided walkthrough from a blank setup to the quarterly return, see Set Up Fringe Benefit Tax.

Opening the Page

Go to Manpower → Payroll Setup → Fringe Benefit. It has three tabs: Setup, Grades and Assignments. Changing anything needs the Disbursement Create/Edit permission. The Tutorial button at the top, and in the grade and assignment dialogs, opens the guide.

Setup Tab

The Setup tab: the Ready to run checklist, the live example and the rates

The tab opens with a Ready to run? checklist that counts the steps in place: tax rate, monthly de minimis, FBT accounts, run type, active grades and employee assignments. A Fringe benefit run needs all of them. Open Grades and Open Assignments jump to those tabs. Under it, a live example line works one grade through the calculation with the current numbers: allowance − de minimis = taxable ÷ divisor × rate = FBT, paid by the company.

Each card (Ready to run, Tax rate and gross-up, Monthly de minimis, Pro-ration, Employer-borne tax accounts, Fringe benefit run type) has an (i) button that explains it.

FBT rate (%) / Gross-up divisor (%)
Statutory defaults are 35% on a value grossed up by dividing by 65% (residents). Rates accept 0 to 100 and divisors 1 to 100. Use statutory rates appears once you change them and puts the defaults back.
Non-resident alien rate (%) / divisor (%)
For non-resident aliens not engaged in trade or business: 25% and 75%.
Monthly de minimis
Itemised amounts per month. This part of the allowance is exempt and never taxed; the rest is a fringe benefit. Amounts above their BIR ceiling (RR 29-2025) are flagged: each line shows its ceiling (for example "Up to ₱333.33 a month"), an amount above it shows an error, and the total carved out is shown.
Pro-ration of the title allowance
By attendance reduces the allowance for absent days and for days before hire or after separation. Never pro-rate pays the full monthly amount. De minimis and hardship are never pro-rated.
Days the month is measured against
Company working days or Employee scheduled days (with attendance pro-ration).
Absent days not deducted
Absences up to this many days do not reduce the allowance.
FBT expense / payable account code
Where the employer-borne tax is booked, by cost centre. Both are required before a run can be computed; a warning stays on screen while either is missing. Grades paid through payroll use the same two codes in the payroll journal unless the account map names others.
Payroll cutoff (Paid on)First cutoff of the month · Last cutoff of the month
Shown when a grade is paid through payroll. On a semi-monthly or weekly payroll the whole month is paid on this one cutoff; a monthly payroll always pays it on its one cutoff. Default: last cutoff.
Changing a field raises the save bar

Saving the Setup

Nothing is saved as you type. When something changes, a bar appears at the bottom: You have unsaved changes to the setup. Click Save setup, or Discard to return to what was saved. Save setup is disabled while a field is invalid (a rate or divisor out of range, or grace days outside 0 to 31).

Creating the Fringe Benefit Run Type

Optionally pick the Allowance expense account and Allowance payable account from the chart of accounts (both, or neither: without them the fringe runs produce no journal), then click Create run type. A confirmation appears and Open Disbursements takes you there. Once the run type exists, the status line says so and the button reads Update run type, to use when the accounts change. The run type is ready to use for monthly runs.

Grades Tab

The title allowance table. Click New grade to add one, or click a row to edit it.

The Grades tab
The grade dialog, with a live FBT estimate
Code / Name
The grade.
Monthly allowance
The monthly title allowance for the grade.
Hardship allowance
Added to the title allowance; not pro-rated.
Paid throughDisbursement run · Payroll cutoff
Where the grade's fringe benefit is paid. Disbursement run (the default): a monthly Fringe benefit run in Disbursements. Payroll cutoff: the regular payroll pays it. See Paying It Through Payroll Instead.
Active
Whether the grade can be assigned. Only active grades can be assigned.

The table also shows how many employees hold each grade and FBT a month (est.): the tax that grade costs the company in a full month at the current setup, before attendance pro-ration and any extra allowance. The code cannot be changed after the first save.

The trash icon deletes a grade after a confirmation. A grade that employees still hold cannot be deleted: the icon is disabled and says how many employees hold it. Switch the grade off, or move its employees to another grade first.

Assignments Tab

Which employees receive which grade, with effective dates. Click Assign employee to add one, or click a row to edit it. The button is disabled, with a message, until at least one active grade exists. A Status column shows Current, Upcoming or Ended, and NRA marks non-resident aliens. The trash icon removes an assignment after a confirmation; runs already computed are not changed.

The Assignments tab
The assignment dialog, with a live FBT estimate
Employee / Grade
Pick the employee and a grade.
Extra allowance
Added to the hardship component and taxed with it, for example a cash component given to one person.
Effective from / Effective to
Assignments are dated, so a grade change takes effect from its date and past months are not rewritten. One employee's assignments cannot overlap, and an end date before the start date is an error.
Non-resident alien not engaged in trade or business
Uses the non-resident rate and divisor.
Remarks
Free text.

A line in the dialog shows the employee's monthly FBT estimate, before attendance pro-ration.

Running Fringe Benefits Each Month

  1. Start a run with the Fringe benefit type

    Pick the period and pay date as for any run. An employee is paid for the days their assignment covers in the period.

  2. Click Compute

    For each assigned employee the run creates a taxable fringe line, a de minimis payable line, and an accrual-only line for the tax the employer bears. The employee is paid the allowance; the tax is booked to the accounts set above.

  3. Approve and release as usual
Warning
The FBT is not part of the employee's taxable income. The quarterly return is produced from Released runs. See BIR 1603Q Fringe Benefit Tax.
Tip
Cannot compute? Check that both FBT account codes are filled in on the Setup tab.

Paying It Through Payroll Instead

Set a grade's Paid through to Payroll cutoff and its employees' fringe benefit is paid by the regular payroll instead of a Fringe benefit run. The amounts are the same: the same rates, de minimis and attendance pro-ration.

A grade paid through the payroll cutoff
On the cutoff that carries the month (Payroll Center → cutoff → employee)
  • On the payslip: the de minimis part appears as an allowance in the earnings (inside gross pay, exempt), and the taxable fringe appears under Fringe benefit added to net pay. It is outside gross pay, taxable income and the government contribution bases. The tax is not shown and never deducted.
  • Which cutoff: the one picked in Payroll cutoff (Paid on). Absences are measured over one payroll month ending with that cutoff (that cutoff and the earlier one in the month before it).
  • In the books: the payroll journal debits the fringe benefit as an allowance expense and books the tax as Fringe benefit tax (employer expense) against Fringe benefit tax payable.
  • BIR 1603Q: counts the tax of POSTED payroll cutoffs in the month of their pay date, next to Released runs.
Warning
An employee's month is paid one way only. The employee's latest grade in the month decides which way. If a Fringe benefit run already pays the employee in a pay month, the payroll cutoff of that month skips them, and the other way round. The run lists who it skipped and why.

How It Connects

Gets its data from

Feeds into

  • Disbursements — a Fringe benefit run turns this setup into the monthly payments and the tax the company bears.
  • BIR 1603Q Fringe Benefit Tax — the quarterly return is built from the Released runs and the posted payroll cutoffs.
  • Payroll Center — grades paid through payroll are added to the cutoff that carries the month.
  • Payroll Journal — books the fringe benefit and the tax the company bears for grades paid through payroll.
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