Salary Packaging for Employers: Why Partner with a Specialist Provider
Salary packaging is one of the most valuable benefits a not-for-profit employer can offer, and one of the few that lifts your team's take home pay without adding to your salary budget. The catch is that running it well takes real tax expertise and careful compliance. That is exactly why most organisations partner with a specialist provider rather than doing it alone. Here is what that means for you. What salary packaging does for your people Salary packaging lets eligible employees pay for certain everyday expenses out of their pre-tax salary. Because those costs come out before tax, their taxable income falls and their take home pay rises. For staff at eligible not for profit organisations the benefit is especially generous, thanks to Fringe Benefits Tax concessions the sector is entitled to. The same salary can go noticeably further, which matters enormously when you are competing for good people against larger or better funded employers. For you as the employer, that is ...