Salary packaging might be an incredible incentive for employees, but did you know all the benefits available to you as an employer? Here is your quick guide to how outsourcing your salary packaging can improve your HR strategies and your bottom line.
Reward & Retain
If you offer salary packaging or novated leasing options to your current employees, you’ll inspire confidence and increase loyalty. Your team members will feel rewarded for all the hard work they do with visible financial advantages, such as being able to afford that brand new car. These arrangements make them valued and give them a reason to stay – especially if other employers aren’t offering such incentives. The salary packaging options available to your employees will depend on your industry, but by outsourcing to a trusted provider such as The Salary Packaging People, we can help you tailor your salary packaging structure to suit your eligibility.
Save Serious Dollars
It may surprise you to know that using a salary packaging provider won’t require any additional investment by your company. Salary packaging providers receive payment through minor administrative fees that form part of your employee’s pre-tax deductions. Given what your employees save, these fees are negligible. The most important thing to remember is that you do not pay extra for the service and these arrangements could help your business save money. When set up correctly, a reduction in your employee’s pre-tax income can result in a decrease in your Payroll Tax Obligations. An experienced provider can also ensure this is set up to be fully ATO compliant.
Claim Tax on Leased Vehicles
Even though your friendly provider will handle all the paperwork, novated lease cars are leased through your company. This means you can claim on the lease and the running costs of the car for a healthier, happier tax outcome at the end of the financial year. These savings can be noteworthy if you have multiple employees that take advantage of this benefit. Novated leases are a particularly attractive incentive to reward and retain employees. The best part is that you don’t have to have an FBT-exempt status to offer it. Most private businesses with even just a single employee can offer this reward.
Entice New Recruits
On the hunt for new employees during a personnel shortage? Salary packaging is the perfect way to entice fresh faces without putting your hand in your own pocket. The many benefits of salary packaging can be leveraged to tempt the best talent to your company. Given the range of services that can be paid for with pre-tax deductions, it is definitely worth highlighting in negotiations. Depending on your industry, new employees can expect to use pre-tax deductions to buy a new car and pay for bills, mortgages, holiday accommodation, rent, credit cards, loans, property rates and more.
Want to know more? Let’s chat.
At The Salary Packaging People, we’ve helped hundreds of employers design salary packaging solutions that result in healthier finances and higher employee retention rates. Contact us or call 03 5229 4200 to talk to someone today.