How Does Salary Sacrificing for Portable Electronic Devices Work?

Ronerrlaw on 23/12/2018 - 11:51

Quite new to salary sacrificing and have a basic idea about it.

Wanting to know how does it work for an employee who purchases a phone or laptop outright then enrols into a salary sacrificing schedule?

My employer allows employees to purchase mobile phones and laptops as we use them for work.

For example if I was to purchase a mobile for a $1000, then salary sacrifice it. How much would I receive back in cash? If any.

And would the entire $1000 be used to offset my gross income?

Also smartsalary the salary sacrifice provider has additonals fees, who pays for these?

Thanks in advance.

Comments

ShortyX on 23/12/2018 - 12:13

+3

You buy the laptop/phone and pass the receipt and the Smartsalary application form through to your company's HR/Payroll department. They'll reimburse the full purchase amount then begin deducting amounts from your pay (pre tax) over the specified amount of months.

Smartsalary costs about $80 per year and I'm pretty sure that amount is included in the pay deductions.
Imhereforcomments on 23/12/2018 - 12:17

+2

It's done pre-tax from your gross salary. Normally done over a period of pay cycles or can be done in one. Using a simple scenario;

Your gross salary for this pay cycle is $2500. You purchase a laptop for $1000 pre tax. $1500 is then your new gross amount you are taxed on and then will be paid to you. Depending on what industry you work in you might have a salary cap. The fees are paid by you in pre-tax as well. You should speak to your salary packing department or smart salary for more info.