My Payroll contributions are different from my quote?
Catch up Payments
There may sometimes be a slight delay between the commencement of your lease and the first salary contributions for your lease from your payroll. For example you may collect your vehicle and have it for 3 weeks before a salary contribution occurs.
As a result, your employer will calculate the amount that is owed for any missed period and adjust the upcoming payroll deductions accordingly to make up for it. If you missed a full fortnight or months contribution, it will need to be "caught up" in the next few pay runs.
Depending on the duration of the pay period and the delay, this catch-up amount is usually spread out over multiple pay cycles to minimize any impact on your take-home pay.
Fringe Benefits Tax (FBT) post-tax adjustment
At the start of a lease midway through an FBT year, we assume that the FBT contribution needs to be pro rata which may result in a slight adjustment to the post-tax contribution.
FBT liability begins from the date of vehicle settlement. In cases where there is a delay in payroll contributions starting, we will calculate the additional FBT liability for the initial period and make necessary adjustments to the post-tax contributions.
As we approach the end of the FBT year (1st April to 31st March), these adjustments may become more noticeable. Your employer will need to ensure that the FBT liability is met within the remaining pay cycles of the current FBT year.
Your novated lease package (Total Cost) will remain the same, however the split between pre-tax and post-tax may change to ensure FBT is not payable.
Example:
You receive your vehicle and your salary contributions miss a fortnightly payroll. In this scenario the post-tax that was missed needs to be collected over the remaining pay runs in the reporting year (1st April to 31st March)