SDP Solutions - Payroll Service - Salary Packaging
Salary packaging is a legal process whereby an employee, with the employer’s approval, remodels existing cash salary into a combination of cash and non-cash salary. This enables you to decrease your tax outgo by spending from your pre-tax dollar rather than post tax salary, hence increasing your net take home pay.
These packaged benefits can either be taxed at a concessional rate or in some cases be tax free. Salary packaging benefits both the employee and the employer and can be delivered at no cost to the organisation.
In deciding whether to participate in salary packaging, the benefits need to be carefully considered in relation to individual and personal circumstances. It is strongly recommended that employees obtain independent financial advice to ensure that their salary package suits their personal and financial requirements.
All salary-packaging services for employees, excluding contractor, will be arranged through employers and administered by SDP Solutions.
- Administration of personalized Salary Packaging plans for staff such as:
- Novated or associate car leasing
- Deduction of professional / personal expenses from gross salary
- Laptop packaging
- Living away allowances
- Advisory services to employees with relation with salary packaging
- Procurement of relevant documents/ declarations from employees
- Tracking of car expenses using fuel cards
- Management of funds transfer to relevant service providers such as leasing companies, etc
- Computation of FBT and end of year reconciliation and reporting to prepare FBT returns