Benefits Of Salary Packaging

By Author: franklin paigee
Total Articles: 7
Comment this article

Salary packaging is a process, wherein an employee specifies the components of his total compensation. It may be the grouping of cash salary or benefits as per the list of items permitted by the employer. It generally comprises of the staff giving away a portion of his future entitlement of wages or salary in return to which the organization for whom he is working provides him with the benefits with a similar total cost to the organization, but with better value to the staff. For ensuring better tax purposes, it would be wise for an individual to agree upon the packages before actually starting his work for the organization. The salary that is forgone by the employee must be sacrificed for the period of the arrangement. However, the time of payment of benefits might not coincide with the period of payroll. So, when the employee reaches the end of the agreed upon period or when he wishes to terminate from the employment, the remaining cash put aside to be used for payment of benefits must be taken as taxable compensation or salary, wherever applicable.

If you are new to the concept of salary packaging, there will be professional ...
... salary packaging company to guide you in deciding on the items to be included in the packaging like investment loans, relocation expenses, home office expenses, self-education, journals, magazines and newspapers, cars, etc.…. They are recommending that with the help of this method, you can increase your net income each year. They are also recommending organizations to look this as a means to reward their working force with minimal or lesser cost to them.

Some of them acting as a salary packaging company are also acting as a contractor management company. If you are an employer dealing with a number of contractors and has allocated the work pertaining to your organization to them, just because of the fact that you felt, rather than setting up your own office and employing staff on the payroll, this would be a great idea, these companies can help you. Your idea is great, but dealing with a number of contractors at the same time can be highly confusing. So, you can take the help of a contractor management company, who can handle them with utmost care and focus towards improving your business. They will also relieve you in such a way that you can concentrate on the core activities pertaining to your business.

So, select a reliable company and keep yourself of the worry about your business development.

Pendragon can provide excellent guidance regarding the requirements of licensing in specific cases, and most importantly untangle the possible problems prior to commitment. Also we provide integrated people management support to you in many key areas including, 457 australian visa, Payroll and Salary Packaging, Contractor/Employee Management, Back office services, and many more. To know more about salary packaging company, visit us online.