You have to spend money to make money, right? If you’re an employer, you’re probably pretty sick of this adage. Running a business is nothing short of expensive and the costs are pretty relentless, especially when it comes to using an outsourced supplier. That’s why we’re here to tell you, that when you outsource salary packaging to a reputable provider, the benefits pay for themselves – and you won’t receive an invoice afterwards. Here are 5 reasons why outsourcing your salary packaging is the smartest non-investment you’ll ever make for your business.
1. You don’t pay anything
Just in case you didn’t get that, we’ll say it again. You don’t pay anything. Salary packaging allows your employees to access their pre-tax income and therefore, pay less tax on their take-home pay. This is not a service which you have to pay for. For every employee that salary packages, the administration fee is paid by them – not you. Better yet, there’s no extra stress put on your payroll department. Plus, when you use salary packaging experts, you’re assured of complete taxation compliance that mitigates risk to you or your employees.
2. Enjoy free advice
The benefits of salary packaging are extensive and have multiple applications. It can be a complex topic to navigate, especially for uninitiated or ill-informed individuals. In our industry, we live and breathe salary packaging, so expertise is always readily accessible. The objective is to ensure your employees can enjoy the feeling that comes with making more from their own money. Most reputable and customer focused providers help determine the eligibility of each employee, run information sessions and speak to your staff members one-on-one to meet their needs. You and your staff are welcome to contact us at any time to discuss the best way to make the most of salary packaging benefits.
3. Save Time and Money
If you manage your salary packaging benefits in-house, that’s more time spent by your payroll and/or finance departments and potentially the need to hire extra staff – especially if you are a large organisation. Outsourcing negates the need for you to spend your own resources or dedicate a department to salary packaging. Best of all, experts who know everything there is to know about salary packaging might even find ways to save you money. For example, did you know that allowing your employees access to a novated lease car may reduce your payroll tax? With the right outsourced provider, you can stay completely up to date with the latest ATO benefits and exemptions for the best outcomes for you and your employees.
4. Your employees will thank you
They may not say it to you directly, but it’s common knowledge that employees show their appreciation in other ways. Salary packaging encourages the three R’s – Recruit, Reward and Retain. By outsourcing to an expert supplier that your staff can trust for helpful advice, especially one that saves them money, you’ll be regarded as an employer that rewards them. An employer that rewards their employees is proven to have higher retention rates.
5. We’ll even do the reporting
Depending on your financial status as an employer, you may need regular reporting to ensure full compliance with all areas of Fringe Benefits Tax (FBT) legislation and regulations. Charities and NFP organisations have legislative advantages for items that can be paid as a benefit, with exemption from fringe benefits tax up to a certain limit per employee. Whatever your FBT status, a salary packaging product delivered by a reputable supplier will help you deliver a great program to your employees without exposure to FBT risk.
Curious? Let’s chat?
At The Salary Packaging People, we tailor our salary packaging services to each organisation and employee, so have a chat with us about the solution that will be of most benefit to your business. Contact us or call 03 5229 4200.