How to be boss of the year
easifleet novated leasing can transform your company in the eyes of your employees
In this day and age business owners are finding it increasingly difficult to attract and retain valued employees. Salary packaging delivers substantial tax savings to employees at no cost to the employer. Introducing salary packaging options for your employees can position you as an employer of choice.
Salary packaging is where an employer and employee agree that the employee’s remuneration package will be received by way of a combination of cash salary and non-cash benefits. Anyone who is employed, and has approval, is able to salary package and potentially save thousands of dollars each year.
Instead of receiving a gross income, on which income tax is payable, employees can choose to take part of their pay in some other form of benefits before income tax is applied. These are known as employer provided benefits. easifleet partner with employers and employees to set up and explain salary packaging in easy to understand terms.
Novated leasing is great way to offer increased remuneration packages while transferring the risks of owning and operating a vehicle to the employee. A novated lease is a three party agreement between the driver, the employer and easifleet. The driver enters into a finance lease with easifleet and then a novation agreement is used to transfer some of the lease obligations to the employer.
Once the novation agreement is in place, the employer is considered to be leasing the car. This allows the car to be treated like a company car which provides significant income tax and GST savings to the driver.
To maintain the novated lease, the employer deducts the regular payment from your salary, and then remits this amount to easifleet to pay for all the car’s running costs.
easisfleet will help to monitor the driving habits and car expenses to ensure the novated lease budget stays on track. We then assist the Payroll Department with applying the packaging schedule and provide assistance with managing the deductions for the length of the lease.
Become an employer of choice
A salary packaged novated lease is an increased remuneration package option that allows employees to make the most of their take home pay by reducing their taxable income and giving employees the opportunity to own the car of their choice for a fraction of the cost.
Employers benefits from:
- Reduced fleet administration costs
- No requirement to buy and maintain fleet vehicles
- No capital required to fund the purchase of new company vehicles
- No unwanted vehicle disposal when employees leave
- A cost neutral way to improve remuneration and retention
- Vehicles remain off balance sheet
- The lease moves with employees if an employee leaves the company
- Decreased payroll tax and WorkCover expenses
- Annual FBT reports supplied for all drivers
- Pre and post payroll schedule and tax invoice all supplied by easifleet