Overview
freespirit offers salary packaging including novated car leasing to Australian professionals relocating interstate, New Zealanders when they first arrive in Australia and overseas professionals sponsored on a 457 and 856/121 visa. The tax effective salary packaging ensures the individuals take home more money. This arrangement suits individuals who are employed directly by their client.
How it works
- freespirit provides an estimate to the individual based on their salary package;
- Once accepted freespirit set up the salary packaging and payroll with the individuals employer;
- Each pay cycle the employer pays freespirit the individuals salary;
- freespirit apply the salary packaging and pay the individual directly into their bank account.
Advantages
The individual takes home more money and receives tax effective salary packaging. The employer can offer this packaging to the individual without the hassle of administration and calculations whilst reducing internal costs. This also offers a fantastic attraction and retention strategy for employers.
For more information or to request a presentation e-mail us at osp@freespirit.com.au
Benefits
Employers
- Good staff retention
- Improved cash flow as less pressure on bonuses or wage increases
- Helps attract staff
- Able to be outsourced with costs met by the employee
- Potential reduction in workers compensation, public liability and payroll tax
Employees
- Increased disposable income
- Pay less income tax
- Reduced administrative burden
- Administrative costs tax deductible off your package
Frequently asked questions
Employers
Can I enter into a salary packaging agreement at any time?
Yes, however you can only salary package future entitlements to salary or wages before you become entitled to them.
Can I benefit at all salary levels?
Yes, many items are exempt from Fringe Benefit Tax (FBT) and can be paid for entirely with pre-tax dollars.
What benefits am I entitled to if I’m required to be away from home for a period of time?
Depending on your circumstances you may be entitled to a tax free Living Away From Home Allowance, Travel Allowance, Zone Allowance and many more options. Contact us and we’ll determine a package that’s right for you.
I am a senior foreign executive and I am not sure I am receiving all my Benefit entitlements?
Our salary packaging service provides tailored advice for temporary residents and Australians to ensure you receive all the benefit entitlements including tax free amounts. Please contact us for a no obligation chat.
Is there any limit on the amount I can salary package?
No, there is no limit on the amount you can salary package. However, you will need to keep enough cash to meet your living requirements.
How do I treat salary packaging in the account?
A paper on the accounting entries is available on the freespirit infonet via the link at the bottom of our website.
How do we know how much and what to pay each pay period?
We send you a disbursement advice together with a Payroll Report and invoice that sets out for each employee their net pay, PAYG withholding, superannuation and the benefits to be forwarded for distribution on the employee’s behalf. This occurs the business day before the payment is due.
What documentation should we have with our employee?
You should have a salary package election signed by the employee where they request that you salary sacrifice a portion of their salary (it may be 100%) into benefits together with the remuneration packaging terms and conditions under which they do so. Additionally you should have various statutory declarations in place depending on the benefits. These documents are available on your freespirit infonet.
What about workers compensation and payroll tax liabilities?
You are still liable for these amounts based on the new components of your employee’s salary packages.
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