How employers save money through salary packaging:
- Save through tax incentives
by taking advantage of payroll tax reductions through salary packaging under the Fringe Benefits Tax Act.
- Save on recruitment costs
by attracting the candidates you really want – and keeping them.
- Save on training costs
by keeping the staff you value, you are less likely to have to train someone new.
- No hidden fees or commissions
by being fully transparent, we let you know how it all works and what it is going to cost – right from the start. We also ALWAYS pass on 100% of any discounts negotiated.
Employees expect salary packaging because it provides:
- Access to car fleet discounts
- Convenience of all vehicle expenses (car, maintenance, insurance, registration, fuel) in one salary deduction
- Saving through tax incentives (both personal tax and GST savings are available through salary packaging)
More about salary packaging
What can be packaged? for a PBI / for a Corporate
By salary packaging your employee may also be eligible for a wider range of income-tested benefits e.g. Family Assistance.
Does every employee need to salary package?
No, participation in salary packaging is voluntary for all employees.
How much can be packaged?
There is no maximum salary sacrifice limit. We create packages to ensure the cash needed for living is still provided.
How flexible are the packages?
Employees can start, alter or stop their package any time. With that said, we will make sure the changes align with payroll dates and any other policy requirements to keep the system running smoothly. Pay-Plan will advise as to which salary packaging benefits will be advantageous.
Is it legal?
Yes, offering salary sacrificing through a salary package is legal. See the Australian Tax Office page on salary sacrificing for employees (http://www.ato.gov.au/individuals/content.asp?doc=/content/24632.htm&page=2&H2).
Is salary packaging expensive?
No, this process need not be expensive. And this is where Pay-Plan is more flexible than most…
The salary packaging program need not cost your organisation a cent.
It all depends on what fee structure works best for your situation. And with Pay-Plan there are no hidden costs. Unlike many other salary-packaging companies, we like to be upfront from the start.
Package termination and lease end reconciliation causing issues?
As Pay-Plan mimic your payroll, any changes are quickly identified with terminations reconciled in a timely manner.
Have more questions?
Talk to us about your situation: Contact us