The new FBT gross-up rate will not affect the calculation of an employee’s reportable fringe benefits amount. When calculating an employee’s individual fringe benefits amount, employers will continue to use the former gross-up rate of 1.9417 for reporting on the employee’s group certificate or payment summary. This is regardless of whether benefits that are provided are type 1 or type 2 benefits.

The new gross-up formula is only used to calculate the employer’s fringe benefits tax liability.