Salary
Sacrificing
Salary
Sacrificing is an option more and more employers are offering
employees at all levels of the organisation.
What is it?
In
simple terms, it is when an employee decides to decrease
their gross salary in return for a non-cash benefit such
as a vehicle, superannuation, health insurance, or even
school fees. Both the employer and employee must agree
to this arrangement.
Adjustments
must be made before personal income tax is deducted. For
example, if salary sacrifice contributions were being made
in the form of Superannuation payments, the employer would
pay the salary sacrifice contributions directly into the
employee's superannuation account BEFORE personal income
tax has been paid.
The Benefits:
-
There
are both effective and ineffective forms of salary sacrificing.
-
If
sacrificing to Superannuation, a superannuation surcharge
may apply.
-
Employer
superannuation contribution may be effected.
-
FBT
will be incurred on some forms of salary sacrificing.
-
Need
to be mindful of keeping non-sacrificed wages above
industrial Awards.
-
Your
employer may not agree.
If
you are interested in salary sacrificing, come in and
see one of our staff to discuss your individual needs.
If
you would like further information, please contact us
on 02 4926 4522 or email your enquiry to mail@perryure.com.au
Industry
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