dbrooker
29-05-2014, 05:03 PM
Hi all
I work for a small NFP that has salary sacrifice component to its employee package, a different system to what I have been used to (my previous organization was larger and they paid the tax free component onto a debit card).
Two employee situations: employee 1 - has resigned and left last week, they asked for the sacrifice to be applied to their holiday pay, and employee 2 - is on paid parental leave (Centrelink) and has asked can they have the sacrifice applied to those payments. There are obvious benefits to the employees but tax implications for the employer.
My view was that employee 1 isn't and employee 2 is based on the fact that employee 2 is still an employee and employee 1 isn't. What do the group think?
Des
I work for a small NFP that has salary sacrifice component to its employee package, a different system to what I have been used to (my previous organization was larger and they paid the tax free component onto a debit card).
Two employee situations: employee 1 - has resigned and left last week, they asked for the sacrifice to be applied to their holiday pay, and employee 2 - is on paid parental leave (Centrelink) and has asked can they have the sacrifice applied to those payments. There are obvious benefits to the employees but tax implications for the employer.
My view was that employee 1 isn't and employee 2 is based on the fact that employee 2 is still an employee and employee 1 isn't. What do the group think?
Des