分分请教 salary package income tax saving 的问题

wlu

salary package 里的income tax saving是全属于 employee吗？ 我怎么听说是一半属于 employeee另一半属于 employer呢？

Bubblegal

帮顶

simonwang

It is subject to the salary packagr agreement. Some employers are quite greedy to share the saving. I knew a state health requests 25% of the saving from the employee if you choose to salary package. Some of my clients just ask for admin fee as 3% of packaged amount.

However, I haven't seen any employer asking for 50%. So not sure where did you see that information.

wlu

simonwang 发表于 2013-8-2 10:33
It is subject to the salary packagr agreement. Some employers are quite greedy to share the saving.  ...

The employer paid 13150.08 to the novated lease company as lease rental payment.       

             lease rental paymen13150.08        including GST exclusive amt of 11954.62  and  GST  amount of 1195.46
LESS        pre-tax deduction         9936.92       
LESS        ITC        993.69       
equal        post tax deduction        2219.47       

my question is

How much should the employer claimed GST back from ATO? 1195.46  or ITC of 993.69 ?

simonwang

ITC (input tax credit) is the GST refund claimed by the employer basing on the total lease payment. However, the GST upon post tax contribution (employee contribution) should be treated as GST on sales so the net position is only $993.69, being $1195 - ($2219/11).

wlu

simonwang 发表于 2013-8-6 11:53
ITC (input tax credit) is the GST refund claimed by the employer basing on the total lease payment.  ...

as i know one employer claim GST amount on lease payment, for example 1195.46 for novated lease company A.

But claim GST amount on pre-tax deduction, for example 993.69 for novated lease company B.

Is it vary becasue of different polycy with different novated lease company? thank you .

simonwang

Company B may have post tax deduction from employees, which is the common process for full FBT employers. Company A may have all deduction from pre tax, which could be:

1. the employee is earning more than $180k so employee contribution saves nothing;

2. the employer is within certain industry, such as PBI and HPC or even rebateable employers such as public schools. No need for employee contribution for them in most of cases.

wlu

simonwang 发表于 2013-8-6 13:01
Company B may have post tax deduction from employees, which is the common process for full FBT emplo ...

Thank you . You are very good.is it possible if employee have both pre-and post tax deduction and employer claim GST amount as total lease payment GST component, example 1195.46 ?

simonwang

The employer will claim the total ITC of $1195.46 in both case. Then pay GST on employee contribution if any.So it could be the case same employer has different processes for different employees. Some employers even retain the ITC.

wlu

simonwang 发表于 2013-8-6 13:23
The employer will claim the total ITC of $1195.46 in both case. Then pay GST on employee contributio ...

what do you mean by "employers even retain the ITC" ? does emplyer make revernue out of GST claim? and how?

simonwang

In theory, the salary packaged vehicle is employer provided benefit so the ITC is in the employer's pocket. They can hold onto it and not pass on. But quite rare.

wlu

simonwang 发表于 2013-8-7 08:09
In theory, the salary packaged vehicle is employer provided benefit so the ITC is in the employer's  ...

do you mean the employer deduct GST inclusive amount from salary.  which is $ 10,930.61=9936.92+993.69 in the above example. normally we just deduct $ 9936.92

simonwang

That's another way of processing but your employer takes a short cut. Both fine.

wlu

simonwang 发表于 2013-8-8 16:53
That's another way of processing but your employer takes a short cut. Both fine.

then, can i say 993.69 become employer's avernue.because employer already calimed ITC 993.69.

simonwang

Employee contribution will be the revenue the employer has to record, 2219.47, not the GST. $993.69 is just how much less GST your employer needs to pay.