Match my contributions to my quote
My payroll contributions are different from my lease quote?
There are instances where your first one or two salary contributions do not match your easiquote exactly.
1. Your payroll missed the first contribution or two and needs to "catch up".
2. There are only a few more payruns left in the FBT reporting year.
Payroll Missed a Contribution
Sometimes the day you collect your car is after your payroll cutoff and so the first contribution is missed. In this scenario your payroll will need to collect the missed payment over the next pay run or next few pay runs.
This is quite common and an example is provider below:
1. Payroll Cut off is Wednesday for payday the following week.
2. Your Lease Settles on Thursday
3. The contributions are not collected and only go into action for the following pay run.
There are only a few pay runs remaining in the FBT year.
The Fringe Benefits Tax (FBT) reporting year runs from April 1st - March 31st each year. This is an important ATO reporting period for salary packaging.
This is important where a post-tax contribution is being collected for your car lease. The post-tax contribution is calculated over a full year and then collected per pay cycle. Collecting the full amount of post-tax ensures that no FBT liability occurs and you do not have to pay FBT on your lease.
FBT is charged at the highest marginal rate of tax and is important to avoid having to pay.
Example - Missed Contribution
Your Ongoing salary contributions are:
Pre-tax - $100 per week
Post-tax - $75 per week
If you missed the first weeks contributions and a catchup is done in one collection your next pay should show
Pre-Tax $200
Post-Tax $150
Your payroll may contact you to collect the catch-up over 1 pay or several pays.
Example - FBT Year end is approaching.
The FBT year end is 3 weeks away and your weekly post tax contribution is $75.
This means you need to collect $225 post tax before the 31st of March.
If there are 2 weekly pays remaining the post-tax will show ($225 /2) = $112.50 per week
If there is only 1 weekly pay remaining the post-tax will show $225.
From April 1st onwards your contributions will revert to match your quote exactly.