Fringe Benefits can be categorised as Exempt or Non-exempt. Setup a separate Employer Contribution code for each type or as required. There is a separate contribution category to select for each code.
Go to Setups, Payroll, Employer Contributions, Maintain.
Create a new Contribution Code if not already there i.e.:
FBT.
FBT-NE (for non-exempt FBT transactions).
Enter a description including the exempt status i.e.:
Fringe Benefit - Exempt.
Fringe Benefit - Non Ex.
Select the Type as Value.
Choose the correct Contribution Category i.e.:
X = Reportable Fringe Benefit/Non-cash Benefit (Exempt).
R = Reportable Fringe Benefit/Non-cash Benefit (Non-exempt).
Click Accept (F9) to save the changes and Close (Esc) to close the screen.