A laptop purchased through work via salary sacrifice is exempt from fbt, but theres two big conditions attached. Fbt law allows you to salary package one laptop computer andor ipad tablet per fbt year 1 april to 31 march. A salary sacrifice arrangement is an agreement to reduce an employees entitlement to cash pay, usually in return for a noncash benefit. Buyers guide to computer salary sacrifice employee benefits. Portable devices workrelated salary packaging remserv. The aim of salary packaging is to enable an employee to receive a combination of income and benefits in a taxeffective manner. The key to taxeffective salary sacrifice is for the employee. In some industries and professions, items such as cars. Hi, i have a client that has purchased a laptop for one of their staff.
Reportable superannuation on payment summaries make sure if the. Hci schemes are enabled by the governments 1999 tax. Salary sacrifice is you dont pay gst, and the cost of the laptop excluding gst is paid for using pretax dollars over a number of pay periods set by you. This includes laptop computers, tablets, mobile phones, personal digital assistants and electronic diaries, software, freight to remote locations and accessories bundled with the ped please. The maximum value that can be sacrificed including laptop or pda, software. Laptops salary packaging novated lease salary sacrifice. Contact us on 0 664 323 to find out how you can salary package a laptop, ipad or similar electronic device. Essentially the reason is that the laptop depreciates over 3 years and can only be.
Salary sacrifice can be used to fund a vehicle in two ways. The university retains the right to revoke these arrangements at any time. Looking for a new laptop, but dont think you can afford the latest model. Salary sacrificing laptops, notebooks, ipads human resources. Packaging a portable computer such as a laptop, notebook, tablet or pda could. With our salary sacrifice scheme, you can split the cost of a new desktop into interestfree monthly payments and choose whether to pay it back over years.
Salary sacrifice applications must be made within 3 months from the date the laptopnotebookipad was purchased. Salary packaging happens when an employee chooses to sacrifice part of their pretax wage in return for a product or service provided by their employer. Salary sacrifice arrangements for employees a salary sacrifice arrangement is also commonly referred to as salary packaging or total remuneration packaging. Salary sacrifice arrangements australian taxation office. Salary sacrifice arrangements for employees australian taxation. First and most popular is through a novated lease arrangement. Computer software benefit salary packaging remserv. Repairs, maintenance and software expenses may not be included within the salary package. Salary sacrificing is almost always the better approach. To discuss your salary packaging savings and apply, please contact remunerator on 0 654 834. Please check your salary packaging eligibility by clicking here. Salary sacrifice calculator free version download for pc.
These businessrelated expenses can include your car. Pay monthly for a brandnew laptop with our salary sacrifice scheme. One client is a nfp organisation which allows staff to salary sacrifice 611. So an arrangement today in advance for my next months. Whether you have your eye on a macbook or a microsoft surface pro. Salary packaging is defined as the process of an employee specifying the. Salary sacrifice of work related items including a laptop computer, pda, mobile phone, mobile printer, briefcase, calculator or software. There is no stp category for gross payments in the deductions area. Laptops simplygreen salary packaging novated lease salary. Salary sacrifice schemes only work for you and your employer if the benefits involved are taxfree. Only one laptop and one pda may be salary sacrificed each fbt year 1 april 31 march. Due to ato restrictions this exemption does not apply to. Reimbursement and gst costs of the laptopnotebookipad device will be made over one pay period. If you buy workrelated software for your computer, you can salary package it.
Salary sacrifice employee purchases myob accountright. Salary sacrifice calculator calculate your savings. Well i guess for starters, i understand rudd canned the salary sacrifice laptops after the 0708 financial year, but this is the tax return im in the process of doing. You buy the notebook outright and your employer pays you back over a specified period, or. As salary sacrificing arrangements reduce the taxable income for the staff member, the gross salary shown on the payment summary will reflect the lower taxable salary. Crumplers the salary sacrifice backpack is designed for owners of 12 and under notebooks and tablets who want to add a little flair to their carrying case. Salary sacrifice superannuation via payroll in accounting software xero, myob, reckon the pitfalls to watch out for. Salary packaging is only available to eligible employees of the queensland government as per the standing offer arrangement ptd002716. Make sure salary packaging does not cost you your super. Pay monthly laptops with our salary sacrifice scheme. Tax unit reserves the right to assess each application.
I would like to purchase a new personal laptop computer, an apple macbook 17, as my current computer is not working. Buyers guide to computer salary sacrifice by clare bettelley 28th may 2015 6. Put simply, salary sacrificing means you remove all businessrelated expenses from your gross wages, and you are taxed on the lesser amount. Stp payroll category for salary sacrifice myob community.
It is an arrangement between an employer and an employee, where the employee agrees to forgo part of their future entitlement to salary or wages. Buying a laptop using salary sacrifice gadget guy australia. Salary sacrifice schemes what small businesses need to. Employees may also salary package a motor vehicle, ie apply for a novated lease. The smarter way to pay for your workrelated expenses. I have an employee who would like to salary sacrifice computer repayments and school feeschild care. The trick with salary sacrificing is to do it for future income lose the word reimbursement and youre better off. Second is to simply salary package ordinary vehicle loan repayments.
From home office items and travel costs to electronic devices and other tools of trade, you might be surprised at the range of work. If an employee wants to salary sacrifice part of their pay for superannuation, see set up salary sacrifice superannuation. The employee currently pays these through lease agreement and payment plans directly. The latest models can cost upwards of a thousand pounds, but you shouldnt be priced out of getting your hands on the latest technology that will benefit you and your family. This benefit item is exempt from fringe benefits tax fbt. Seeing as i am on a budget i thought that perhaps i can.
Whether youre a corporate or in government, education, health or pbi we can help you calculate your savings online with our salary sacrifice calculator. I request that the cost of the laptopnotebook computer as stated above be included in my. The implications of salary packaging for you including tax savings and impacts on benefits, surcharges, levies andor other entitlements will depend on your individual circumstances. The programs installer file is commonly found as salary. The salary sacrifice scheme you mention is covered under the home computing initiative hci scheme, which is backed by the dti. Under a salary sacrifice arrangement between the employer and their employee, the employee agrees to forgo part of their future entitlement such as salary or.
Second is to simply salary package ordinary vehicle. This includes laptop computers, tablets, mobile phones, personal digital assistants and electronic diaries, software, freight to remote locations and accessories. Salary sacrifice arrangements for employees australian. Business computer software installed at the date of purchase may also be included as a packaged item. According to the ato, you can agree with your employer to sacrifice some of your salary or wages by having them paid straight into your super fund instead of direct to you. Explains what a salary sacrifice arrangement is, the requirements for an.
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