WELCOME PACK
Important Information relating to your
Salary Package
Version 2 October 2012
Welcome Pack
Table of Contents
TABLE OF CONTENTS ...... 2 WELCOME TO REMUNERATOR...... 3 CONTACT US AND ASSESSING YOUR SALARY PACKAGE INFORMATION...... 4 HOW DOES SALARY PACKAGING WORK? ...... 5 HOW YOUR PAYMENTS ARE MADE ...... 6 HOW DO REIMBURSEMENTS WORK ...... 7 ALTERING OR STOPPING YOUR PACKAGE ...... 8 & 9 NOVATED LEASES …………………………...... 10 FREQUENTLY ASKED QUESTIONS (FAQS) ...... 11 PRIVACY STATEMENT ...... 12 REIMBURSEMENT CLAIM FORM ...... 13
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Welcome Pack
Welcome to Remunerator
Congratulations on your decision to take advantage of salary packaging. I’d like to welcome you to Remunerator. We will work with you to ensure you enjoy the many benefits available to you through salary packaging. Whether you are looking to improve your lifestyle immediately, perhaps through the purchase of a car or house, or taking a longer term view and striving to improve your investment position, Remunerator can assist you in achieving your goals.
Salary packaging is a vital first step to achieving true financial independence. Maximising your earnings through salary packaging allows you to take control of the bigger picture.
We are also able to offer you access to Remunerator Financial Services where you have the option of further improving your financial position, both now and in the future. Our independent financial advisors offer a proud record of taxation and investment expertise and can assist you with retirement planning, mortgage reduction programs and investment strategies.
...it all adds up to financial freedom for life.
Thank you for making the decision to entrust Remunerator with your salary package. We take this responsibility seriously and will ensure you are provided with the best service possible.
Yours faithfully,
Matthew Honan Managing Director
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Welcome Pack
Contact us and accessing your Salary Packaging Information:
Remunerator Website
Your company and individual salary packaging account information is available 24 hours a day via the Remunerator website.
To access this information follow these steps:
• Website address: www.remunerator.com.au • Click on the employees icon, scroll down to statements
There is text explaining how to gain access and understand your statements throughout the facility.
Automated Phone Service
You can access your individual salary package information 24 hours, 7 days a week. You will be required to enter your individual package number and date of birth before securely accessing this information.
(Monday to Friday 9.00am to 5.15pm E.S.T) Business Hours : 1300 654 834 Novated Lease Enquiries: 1800 501 703 Associate Lease Enquiries: 1800 220 028
Postal Address
Remunerator (Aust) Pty Ltd PO BOX 7296 MELBOURNE VIC 3004
Fax
(03) 9882 5444
iPhone App
You can access your individual Salary Package information 24 hours, 7 days a week via our iPhone App. Just download the app from the app store by searching for ‘Remunerator’
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Welcome Pack
How does Salary Packaging Work?
Step 1: Ascertain your budget and consider your circumstances. You may like to use the online calculator on our website to assist you.
Step 2: Nominate which benefits you would like included into your salary package.
Step 3: Complete application form and send to Remunerator.
Step 4: Remunerator will set-up your salary package in accordance with your application. You will be sent an employee package confirmation report.
Step 5: Employee signs employee package confirmation report and provides a copy to your employer’s payroll department.
Stepr 6: P e-tax deductions commence from your salary, Remunerator makes payments with these funds, on your behalf, in accordance to your salary packaging requests.
Process Overview
• Sends completed application form
to Remunerator • Receives confirmation report • Signs confirmation report and provides a copy to employer’s payroll department Payroll Employee Payroll makes pre-tax salary deductions out of your fortnightly/monthly pay
Your pre-tax deductions are paid into your employer’s salary packaging bank account
Payment to Suppliers Remunerator access your
Money transferred directly to your employer’s salary packaging suppliers, for example mortgage or bank account and makes payments on your behalf personal loan payments Payments
Reimbursement Money sent to your individual bank account to reimburse any expenditure you have made via cash or credit card (e.g. credit card repayments or school fees)
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Welcome Pack
How your Payments are made?
Commencement of payment
A package start date will be advised on your ‘employee package confirmation report’.
You will be able to identify that your first salary packaging deduction has been made, as it will be listed on your pay slip.
The first payment made by Remunerator for each benefit will be specified in the first payment date column of the employee package confirmation report.
Your packaged items could be paid in a combination of or both these ways: -
Set and regular payment to supplier (Periodical Payment = PP)
This method is used for expenses of a set amount that occur on a regular and frequent basis such as weekly, fortnightly or monthly.
Once your salary package commences, payment via Electronic Funds Transfer will be made directly to the service provider automatically from your employer’s salary packaging bank account, in accordance with the payment options you specified on your employee package confirmation report i.e.
• The frequency of payment • The amount of each payment • The final date of payment (if applicable)
Reimbursement to Employee (Re)
Some items within your salary package may require you to purchase an item outright and then claim this expense against your salary package. This payment process is referred to as ‘reimbursement’.
When you have paid for the benefit item, post original copy of the tax invoice together with a completed reimbursement claim form to Remunerator for processing. Funds will be paid to your nominated bank account as they are deducted from payroll.
Should your claim be greater than the amount that has been deducted from your salary, you will only be paid the amount that has been deducted to date for that benefit. The balance will be reimbursed to you over the following pay period(s) as your salary is earned.
Reimbursement of your expenses will generally be processed on the day we receive your completed reimbursement claim form and ‘receipt/tax invoice’. Payment will be made within 3 working days.
Benefits paid by this method are, but not limited to, items such as credit card payments, school fees, utility expenses.
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Welcome Pack
How Do Reimbursements Work?
Step 5 Step 1 Funds available in your account 5 days after You pay for your expenses in person, by Remunerator receives your claim. phone, or electronically
Step 2 You mail proof of Step 4 payment, together with a Remunerator transfers reimbursement claim funds from your form, to Remunerator. employer’s salary Please note that meal packaging Account to entertainment claims your account MUST be original only. NO fax copy is acceptable.
Example:
¾ You have budgeted $16,049.65 per year for your Credit Card expenses.
¾ You have $617.29 deducted from your salary each fortnight for salary packaging ($16,049.65).
¾ After 3 fortnights you have had $1,851.88 deducted from your salary ($617.29 x 3). $1,851.88 is available for you to claim.
When you claim less than what has been deducted from your When you claim more than what has been deducted from salary (eg. less than $1,851.88) your salary (eg. more than $1,851.88)
1. After paying $600 off your credit card you fax your 1. After paying $2,000 off your credit card you fax your credit card statement, and a Reimbursement Claim credit card statement, and a Reimbursement Claim Form, to Remunerator. Form, to Remunerator. 2. Remunerator processes your claim within 2 days of 2. Remunerator processes your claim within 2 days of receipt. receipt. 3. $600 is deposited into your account in 3 working days. 3. $1,851.88 is deposited into your nominated account in 3 working days. 4. Please Note: You still have $1251.88 available to claim ($1,851.881 - $600). 4. The remainder of your claim is reimbursed to you over the following pay periods as the money is deducted from your salary. i.e. your claim for $2,000 is reimbursed over 2 fortnights ($1,851.88+$148.12).
Multiple benefits on reimbursement method are ‘pooled’ together and claims are processed and Reimbursed in the order they are received, using the total pooled deduction up to the total annual budget.
The reimbursement claim form can be found on page 1 3 alternatively it can be downloaded on our website.
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Welcome Pack
Altering or Stopping your Salary Package
Personal Details
If any of your personal details change, such as address, phone number, salary details, it is important to notify Remunerator as soon as possible.
This information is necessary in order for Remunerator to accurately manage your salary package. Changing details within your package, such as account numbers or personal details, is not considered a repackage and no repackage fee applies. Some changes need to be made in writing to satisfy ATO requirements, please contact Remunerator via phone or email to request personal detail changes, [email protected]. You can also do these types of changes online by logging in and going to ‘Change your details’.
Annual Package Rollover
One month prior to the start of a new FBT year (1 April), Remunerator will send you a Package Confirmation Report detailing salary packaged items and budgets which are based on your existing package. You will have the opportunity to amend these budgets by returning this report to Remunerator with the relevant changes.
If you do not wish to make any changes, your package will commence from the start date shown on the confirmation report.
If you wish to make alterations to your package you will be required to complete the changes on the package confirmation report and return this back to Remunerator within the timeframe specified on the paperwork. You need to ensure you attach any relevant substantiation documentation that may be required – Please refer to our website for further details.
A new confirmation report will be sent to you with your requested package details.
Altering your Package
If you would like to make changes to your salary package benefit items mid-year, you will be required to complete a ‘ repackage advice form’, with the appropriate substantiation attached. A repackage advice form can be found on our website. A repackage fee will apply.
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Welcome Pack
Package Reconciliation
When you repackage or cease packaging the actual funds paid out on packaged items will be compared against budgeted expenditure, and a report will be provided to your employer.
If your budget has been under spent, the difference will be returned to you via payroll with the appropriate income tax deducted.
Where your budget has been overspent, you will be required to immediately pay back the full difference directly to your employer, or if you are ceasing employment with your current employer, from your termination pay entitlements. (Your employer reserves the right to vary these repayment periods at any time depending on individual circumstances. All funds overspent must be re-paid within the same financial year, where a repayment plan is agreed to).
Termination
You can stop packaging your salary at any time. No cancellation fee will apply.
In order to terminate your package, Remunerator will need notification in writing. To assist you with this, a termination form is available on our website.
Under the following circumstances terminating your package may be required. Please notify Remunerator immediately if any of the following circumstances apply to you:
• Cessation of employment, for whatever reason • Commencement of unpaid leave • Transferring from full-time employment to part-time employment • Suspension without pay • Any transfer, promotion, or on a secondment to a position outside your current employer.
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Welcome Pack
Novated Lease
In addition to your threshold amount ($16,049.65) you may be able to package the following items and gain a further financial benefit.
What is a Novated Lease? A specially designed vehicle lease and it is worth knowing about. Although most people aren’t aware of it, those in the market for a vehicle are usually better off with a Novated Lease over other types of finance.
Why should you get a Novated Lease? Because it allows your car to attract tax benefits. You can pay for all of your car with pre-tax dollars, reducing your taxable income, and saving you more money.
Car can be new OR used Save 10% off the purchase price (NO GST) Save 10% of all your running costs Lease payments & running costs are paid from your pre tax salary Choice of car
Example calculation based on; Employee Salary $50,000 Vehicle Value: $25,000 Estimated Kms: 20,000 Lease Term: 3yrs
With With Packaging Packaging
Gross Salary $50,000 $50,000 Fully Maintained NL $11,695 Mortgage $11,021
Taxable Income $50,000 $27,284 Less Income Tax Payable $8,546 $2,135 Take Home Pay $41,454 $25149
Lease / Running Costs $12,581 $0.00 Less Benefits Not Packaged (Mortgage) $11,021 $0.00
Annual Net Salary $17,852 $25,149 Fortnightly Salary $689 $967
This employee is in front by $7,243.19 per annum
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Welcome Pack
Frequently asked Questions (FAQs)
Please refer to the Remunerator website for a complete listing of FAQs. We’ve included here some of the top FAQs for your information:
I have an invoice for something I purchased prior to packaging, can I claim it? You can use tax invoices and claim for reimbursement of expenses that are up to 12 months prior to the start date of your package. To claim a reimbursement you must show proof of expense and payment – i.e. invoice, credit card statement or bank statement showing payment has been made.
Can I change the structure (content) of my package during the year? Yes, however each time you repackage your salary, your package will attract an administration fee. You are encouraged to budget your twelve month expenditure needs.
Can I separately claim any part of the packaged benefits on my personal income tax return? No, you cannot receive a tax benefit twice. If you package a benefit through your employer you are immediately prevented from claiming it again privately. The salary packaging program brings forward any potential tax savings/claims that you may have, should you privately claim these expenses at the end of the financial year (June 30 each year).
I am allowed to package credit card. Will you pay my credit card directly if I send in my statement? No. Unfortunately we are not able to transfer money electronically to credit card companies. You will need to pay off your credit card first and then send in a copy of the statement showing the payment. We will then reimburse you any money that you are entitled to into your nominated savings or cheque account.
When will I receive funds in my account? Money will be banked into your account generally 3 business days after processing.
I have taken a loan from my father and would like to salary package it. No. Unfortunately family loans are not allowed to be packaged. Only loans from financial institutions can be packaged.
How do I get to my on-line statement? Go to www.remunerator.com.au Select Employee Statements Enter your user ID (i.e. package number) Enter password (i.e. date of birth)
What benefits are available to me? Go to the Remunerator Website and Log in.
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Welcome Pack
Privacy Statement
Remunerator is committed to protecting your privacy and the confidentiality and security of personal information provided by you to us. We are therefore bound by the National Privacy Principles and the Privacy Act 1988 (Cth).
Information we Collect
All the information that we ask for is required for us to effectively manage your salary package and to provide you with the employee benefits available to you as part of the Remunerator service package.
Information may be disclosed only to legally contracted service providers who assist us in managing these benefits.
Right of Access
You have the right to access any such information held by Remunerator that relates to you, and to correct any information that is inaccurate.
If you object to us using the information as described, you can advise us at any time by writing to: The Privacy Officer, Remunerator PO Box 7296, MELBOURNE VIC 3004.
Joint Authorisation
A Joint Authorisation Form is available for you to complete, nominating a third party who can access your Salary Packaging details. You can access this form via our website or by requesting it from our Customer Relations Officers. Fill in the details required on the form and return the completed form to our officers as instructed on the Authorisation form.
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Reimbursement claim form
Name:
Package Number :
Employer:
Date: / / Number of pages including cover sheet:
Instructions:
- Fill out the description of the expense(s) to be reimbursed - Meal Entertainment and Venue Hire/Accommodation Claims: Original receipts & tax invoices must be provided and sent via post with the claim form attached to POST to PO Box 7296, MELBOURNE VIC 3004 - For all other claims: please attach a copy of the receipt(s) and/or Tax Invoice(s) to the Claim Form. Either FAX on (03) 9882 5444 or POST to PO Box 7296, MELBOURNE VIC 3004
Description of Expense (items with GST) Amount $
Description of Expense (items without GST)
Total Amount Claimed $
I agree that the total amount claimed is in accordance with the Blood Service guidelines.
Signed______
Work or Income Related Expense Declaration
Please sign, if you are claiming a reimbursement for a work or income related expense (ie: an expense that if you didn’t salary package would be available to you as a tax deduction on your personal tax return eg . professional development, professional membership or subscriptions to trade journals, financial counselling, income protection). I, declare that the above work or income related expenses were provided to me by my employer and the expenses were incurred by me for the following purpose.
(Description)
I also declare that the percentage of the above expense incurred in earning my assessable income was 100% and is true and accurate. Signature:
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