14 February 2012

sgfleet's salary packaging (also known as salary sacrificing) make it easy for organisations to provide a great workplace benefit for employees. These benefits include:


Neutral Cost to the Employer

There are no fees for the employer if their staff choose a Novated Lease or salary packaging option with sgfleet, including no early termination penalties incurred by the organisation if an employee leaves.


Employee Goodwill

By allowing employees greater flexibility in their choice of products, and by outlining the savings salary packaging will provide, substantial employee goodwill can be generated. Salary packaging can put more money in employees' pockets and can be used as a great tool to recruit and retain employees by offering a very attractive workplace benefit.


Outsourced Administration

sgfleet salary packaging takes the administration and paperwork 'off site'. sgfleet becomes an interface between the employees and the employer's nominated officer with all enquiries handled by experienced sgfleet account managers who have a thorough knowledge of the employer's salary packaging policy.


Off Balance Sheet

The nature of a salary packaging agreement is such that the ultimate responsibility is held by the employee. This means that from an accounting perspective the usual requirement for 'on' balance sheet reporting is not in place. This is because there is no build-up of equity in the products that are salary packaged nor is there an ongoing liability directly attributable to the employer.


Tax Deductibility

When salary packaging vehicles, the monthly payment obligations for the leased vehicles are transferred to the employer, which in most cases means a direct expense deduction can be made on each lease instalment paid.


No Unwanted Items

When an employee leaves the company, decides to no longer salary package an item or when the lease is at end, the vehicle or salary packaged product also leaves the employer. There is no need for the reallocation of excess vehicles or laptops as the responsibility for the salary packaged item reverts entirely to the employee.