Summit Fleets article in this month’s The Association for Payroll Specialists (TAPS) journal.
As you strive to maintain your organisation’s status as an employer of choice, ensuring you have a robust and nimble employee benefits program is essential. A motor vehicle is one of the most popular salary packaged items in the current working culture.
With a Novated Lease the principal objective is to help the employee salary sacrifice any leasing and running costs into one set monthly payment for an agreed term. With the right leasing supplier you can even protect against risk on vehicle maintenance and resale depending on the products used, while managing and reporting on budgeted costs, such as fuel and insurance.
Employees benefit from a number of concessions on these types of transactions that directly translate to cost savings. It becomes a tax-effective way to finance a vehicle and reduce taxable income. The vehicle may be used for private use while also accessing fuel, maintenance and fleet discounting. There is greater flexibility with vehicle choice, while payments are fixed or an agreed term, giving surety and cash flow ease, payroll deductions are therefore consistent.
Employers gain appreciation and engagement from staff who enjoy personal benefits, meaning staff recruitment and retention is enhanced. The good news is that savings and advantages from these products and services are not just limited to the employees.
When an employee takes advantage of a packaged program, there is no direct cost to the employer. More employer level savings and value can be derived from reduced organisational FBT liability, as well as no vehicle ownership risk and responsibility. This then correlates to reduced balance sheet exposure and there is also the potential for payroll and work cover concessions in some states.
The Association for Payroll Specialists (TAPS), established in 1990 is Australia’s original Association representing the payroll industry.
As the voice of the payroll community we represent over 6,500 payroll professionals and businesses including every sector of the economy, from small and medium sized enterprises to major corporations and government departments.
Payroll officers pay the 9.8 million working Australians in excess of $426 billion in wages every year and a payroll officer’s duties now encompass: Accounting, Human Resources, Industrial Relations, Payroll Legislation and IT.
TAPS provide a number of specialised benefits necessary to acknowledge and assist payroll people and keep them up to date with Australia’s unique payroll environment.
Phone: 1300 711 240
http://www.payroll.com.au/
