Enabling your employees get more out of their salary
Salary packaging, also known as salary sacrifice, is a great way for your employees to potentially reduce the amount of tax they pay, and increase their disposable income.
Your employees could pay for expenses, such as a new car, laptop or additional superannuation payments, with their pre-tax salary, so their taxable income is reduced. Your employees will only pay tax on what's left of their pay, so they could potentially save thousands of dollars each year.
It's a great way to reward and recognise your employees' hard work, without increasing wages.
What expenses can my employees salary package?
The types of expenses your employees can salary package depends on your specific industry. The packaging in my industry section details the benefits available to your employees. This may include:
- Additional superannuation contributions
Your employes may choose to salary package additional superannuation contributions on top of the super contributions provided by you
Some employees may salary package car insurance, home and contents insurance, or income protection and life insurance.
Salary packaging a car via a novated lease arrangement enables your employees to lease a new or used vehicle with a combination of pre and post tax dollars, and save on running costs.
- Investment loan interest payments
Salary packaging the interest payable on an investment loan could assist your employees to pay off their loan quicker and save on interest.
Salary packaging work-related expenses, that would usually be tax deductible, could provide your employees with an increased cash flow year-round - rather than just at tax time. Your employees may choose to salary package items such as laptops and iPads, professional memberships and airport lounge memberships.
If your employees work in a remote area, they may be eligible to salary package expenses such as mortgage interest, private or company provided rental accommodation and fuel.
This benefit is specifically designed for Fly-in, Fly-out (FiFo) workers. It enables your FiFo employees to salary package the costs of flights, including non-direct trips.
Your employees have the opportunity to salary package products made by your company or provided by you as an employer in addition to any employee discounts already applied to the product.
Similar to the company products benefit, the in-house benefits apply to company provided services. This may include items such as in-house childcare, car parking or gym membership expenses.
Administering your salary packaging program
It can often be complicated to administer your salary packaging program - it requires specialist resources, processes and skills.
Outsourcing your salary packaging program not only reduces the amount of involvement for your team, but also reduces the associated risk.
As part of an ASX listed company, RemServ's ability to manage your risk and compliance activity is second to none. Our tax and compliance specialists are available to provide assistance and guidance.
We also provide a range of services to ensure your program is managed effectively and your employees are provided with a service that reinforces your brand and culture.
Ready to find out more?