Salary sacrifice (also known as salary packaging) is an arrangement wherein an employee agrees to forego part of their future salary or wage in return for their employer providing one or more benefits of a similar value. This has tax implications for both employees and employers that have agreed to salary sacrifice arrangement conditions. Whether you’ve arranged salary sacrifice for car loan repayments, salary sacrifice for mortgage repayments or salary sacrifice for super contributions, a tax specialist at Lotus Smart can provide tailored accounting for salary sacrifice to ensure you’re operating within ATO regulations.
Lotus Smart can assist with accounting for salary sacrifice superannuation, loan arrangements and more for employees. Salary sacrificing provides a way for employees to get benefits of a similar value. It also has the benefit of reducing the income tax they have to pay on their wages or salary. In the end, the employee who has agreed to salary sacrifice has less disposable income, but they can be better off in the grand scheme of things.
While a salary sacrifice arrangement reduces tax liability to employees, it may attract fringe benefit taxes to employers. This will need to be declared when the time comes to report and declare taxes. Please note that super contributions are taxed in the super fund rather than as fringe benefits. At Lotus Smart, our accountants offer the best expertise and technology to provide employers with the most effective tax saving solution by setting up the correct salary packing structure.
Are you asking yourself “where can I get first class accounting for salary sacrifice near me at a low cost?” A consultant at Lotus Smart can respond to your queries, provide helpful advice, and assist you in achieving your goals. Visit our online contact page for details on how you can talk to us. We’re ready, willing and able to help clients located in and around the following the areas: