Salary Packaging and FBT – Timing issues of employee contributions and the effect of a journal entry

Do you offer salary sacrifice arrangements to your employees? This article discusses the timing issues that you need to consider where an employee is required to contribute towards the costs of non-cash benefits provided under an effective salary sacrifice arrangement. Effective salary sacrifice arrangements Most organisations offer salary sacrifice arrangements as part of remuneration packaging … Read more

Salary Packaging Q&A – Refunding after-tax contributions from ceased salary packaging arrangement

Our employee is ceasing their salary packaging arrangement and has excess after-tax contributions. If we refund these contributions, will they be subject to PAYG withholding? Alternatively, can we hold the excess contributions for use in a later FBT year? Question We have an employee who is ceasing his salary packaging arrangement (novated lease vehicle) and … Read more