Salary packaging is a great way to offer your employees even more benefits at no cost to you, and help them get more out of their salaries. When you choose to outsource salary packaging, the whole process is as simple as it is beneficial. In this article, we’ll cover the entire process from the initial sign-up to packaging your employee’s first salaries, and all the benefits that come with it. So, let’s start where most businesses do –
Step One – Understanding the need for Salary Packaging
Most people have heard of other businesses offering salary packaging, and although it’s a foreign concept to them, it definitely sounds really beneficial. Understanding the need for salary packaging is a great place to start. You’re likely to begin looking into it and potentially getting in touch with an expert in the field to learn more.
When searching for a salary packaging partner, it’s important to find an organisation that aligns with your values and becomes a true collaborator. Your salary packaging expert should act as a valued partner who understands and supports your goals while smoothly adding salary packaging as a benefit to your business. They achieve this by creating a unique solution for your business, helping you determine your employee’s eligibility and guiding them through what expenses they can salary package.
Step Two – Introducing the idea to your staff
Once you’ve realised all the benefits of salary packaging for your business and have started to explore your options, you can introduce the idea to your employees. This is the perfect chance to show them that you’re looking to add even more benefits to their employment with you.
Explain what salary packaging is and what the benefits are for them as individuals. Here are a few to you could include –
- Salary packaging reduces their taxable income, which minimises the amount of tax they need to pay every month.
- Because they only pay tax on the remaining amount (after paying for the things they’ve salary packaged) they pay less tax.
- Salary packaging increases their take home pay.
- They can potentially package everything from everyday expenses and meals & entertainment benefits, to novated leases and remote area benefits.
Step three – finding the right provider for you
When looking for a provider, focus your search on experts in the field, who have years of experience in salary packaging. The ideal provider is one who will offer your staff members bespoke solutions, and who will make the process as simple as possible for them. Because it’s your employees salaries, you want a team who will give you the confidence and peace of mind knowing that every part of the process has been carried out correctly, and that all tax guidelines have been properly followed. You should also look for a provider who will work in partnership with your business, sharing values and with a common approach. A partner should offer education and training for your staff members on every detail of their salary packaging solutions.
Step Four – Communicating to your staff
Once you’ve selected a provider, it’s important that you communicate the decision to your employees. This is the perfect opportunity to remind them of all the benefits of salary packaging, and what each of them can expect when their next salary gets paid. At this stage, it’s important to ensure that your staff members have access to information and answers to any questions they might have, so they feel completely in control of their salary packaging and any decisions made.
Step Five – Education and training
Education is essential to the success of salary packaging for your employees. Your provider might offer face-to-face or online sessions & consultations to help. The goal here is to ensure that your employees understand every detail and how they can make the most of their benefits.
Enjoying the benefits of outsourcing salary packaging
Now that we’ve covered the outsource salary packaging process, let’s look at the benefits you’ll be able to offer your employees, at no cost to you.
Peace of mind. When you work with an experienced salary packaging team, you and your employees can relax knowing that everything has been taken care of by experts.
Free advice. Salary packaging can be a complex topic to navigate, but your provider will be able to advise your employees on everything they need to know, putting them in control and helping them enjoy the feeling that comes with making more from their own money.
Full support. You’ll also be able to contact your salary packaging expert whenever you need to, to discuss the best way to make the most of your salary packaging benefits.
Saving time and money. Outsourcing your salary packaging means you don’t need to spend your own resources or dedicate a department to overseeing your salary packaging. Happier employees. Helping your employees’ salaries work harder for them is a great show of faith in them and what you’re willing to do to ensure that they get the most out of their salaries. Employees are also likely to see salary packaging as an added benefit of being an employee within your business, which will further improve the way they feel about working there.
Making every dollar count
Outsource salary packaging is as beneficial to your employees as it is to you. Hiring an expert means that everything is taken care of, and that staff members have all the information they need to get more out of their salaries every month. By following this step-by-step guide, you can seamlessly introduce salary packaging to your business, adding to how appealing you are to top talent, and showing your current employees how important their happiness is to you as their employer.
Solutions that suit your business
For over 30 years, CBB The Salary Packaging People have been dedicated to partnering with not-for-profit organisations to assist all their hardworking individuals. As the only independent and regional provider of salary packaging solutions in Australia, we’re financial experts who support those who support our communities. We’re the ones you turn to because we not only care about your mission, but we also add real value for you and your dedicated employees. Trust us with your outsourced salary packaging needs and let us create your employees’ bespoke solutions to help them make the most out of every dollar they earn.