Enjoy More Pay Every Pay Day
everyPAYDAY IS EASY
It's all about using your Pre Tax Money to pay for certain items
Pre Tax Money, reduces the tax you pay, which increases your take home pay
When an employee gets paid, there can be numerous deductions that get taken out of their pay before tax is calculated. These deductions usually include things like voluntary payments to super, or salary sacrifice items.
Once these amounts have been deducted from your gross pay, the government then calculates the tax payable. The smaller the amount you have earned, the smaller the amount you are taxed. Using pre-tax dollars to buy things saves you money by reducing the amount you are taxed.
You pay maximum income tax on your Post Tax Money. It is money that is left after paying tax. It is deposited it into some type of bank account. It’s everyone’s goal to find out ways to pay less tax and take home more pay.
what can you package To Enjoy More Pay?
Depending on your industry and your employer, you may be entitled to salary package a range of work related expenses, equipment and costs.
Salary packaging could reduce your taxable income but may affect the way the ATO calculates your HECS/HELP repayments – which could leave you with a tax bill at tax time. So, your employer may not be taking out enough HECS/HELP repayments or in some cases, may not be deducting any HECS/HELP repayments at all. To avoid a possible shortfall at tax time for unpaid HELP repayments, you need to let your payroll department know when you start salary packaging as they may need to increase or recommence the amount of your withholding tax deductions. While each employer is different, in most cases your payroll department will be able to help you manage the process, and changing your HECS/HELP repayments which is quite simple to do. Your payroll department may have its own form or they may ask you to use the ATO’s form Tax declaration form or Withholding tax form. Check with your payroll department first or enquire directly with one of our NSP staff members at Contact NSPibus leo.