CORPORATE SALARY PACKAGINGBoth your business and your employees benefit from the savings provided by our Salary Packaging Program

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The Harvey Norman process to salary sacrifice authorised business items through an employee’s wages is an administration dream. It is a great benefit to offer employees with minimal administration involved for the employer.M2 Group

HNSALARYPACKAGING.COM 1800 022 116

Salary PackagingMost organisations can benefit from Salary Packaging. Those who provide the flexibility for employees to bring their own device or work from home see the greatest benefits.

What is Salary Packaging? Salary packaging happens when an employee chooses to sacrifice part of their pre-tax wage in return for a product or service provided by their employer.

A product or service provided by the employer is classified by the Australian Taxation Office (ATO) as a Fringe Benefit.

A salary packaging arrangement is most effective when the products provided in lieu of cash wages are Fringe Benefit Tax (FBT) exempt.

An FBT exemption applies for portable electronic devices that are for work related use. There is a limit of one item per FBT year for items that have a substantially identical function and the FBT year is defined from 1 April to 31 March.

Tax Saving When an employee uses pre-tax dollars to acquire FBT exempt devices their taxable income is reduced. As a result their employer benefits from a reduction in payroll tax. The employee may also pay less income tax.

Allowing your employees to salary package their next laptop, tablet or phone will see them benefit from a saving of up to 40% with repayments coming out of their pre-tax salary over one, three or six months.

In addition, as the employer your business will benefit from on-cost savings for every dollar that is salary packaged.

Employees pay less income tax

Employer reduces payroll expenses

Salary Packaging made simple

Latest devices for improved efficiency

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A Simple ProcessWe have developed a seamless salary packaging solution that provides financial benefits for employees while reducing employer operating costs.

APPLY

Employees apply to salary package online via the Harvey Norman Salary Packaging Portal.

The employer receives salary packaging requests via email and approves requests via the Harvey Norman Salary Packaging Portal.

Authorised employees receive their eligibility code via email.

SHOP

Employees visit a Harvey Norman Computer Store with their eligibility code.

Employees can then shop from the huge range in-store.

Harvey Norman staff verify employees’ ID and complete the transaction.

Harvey Norman Salary Packaging now offers an online solution which provides seamless integration between Harvey Norman, the employer, and the employee. This makes the process simple and cost effective.

The salary packaging process is bound by the regulations as set out by the ATO and our expert support team can assist with the set up and provide guidance to ensure your salary sacrifice program operates in compliance with the ATO’s regulations.

We can help you identify the portable electronic devices used by your employees that may be FBT exempt. Examples of allowable devices include the following:• Laptops• Tablets • Mobile phones• GPS devices• Smart watches and fitness trackers

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The streamlined process makes life easy for our

administration staff with one monthly statement.

QANTAS

REPORT

Harvey Norman Salary Packaging sends the employer an electronic report advising which employees have made a purchase.

Harvey Norman Salary Packaging sends a monthly expected payment report outlining all the active accounts that require payment. This allows the employer to make a single lump sum payment against multiple accounts.

DEDUCT

The employer commences salary packaging deductions from employee wages over a one, three or six month term.

The employer makes payments to Harvey Norman Salary Packaging over the same monthly term as the employee salary packaging agreement.

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Everyone BenefitsImprove your employee benefits program while achieving genuine and quantifiable business outcomes.

Our easy to use Salary Packaging Web Portal provides a simple approach to salary packaging that is enjoyed by both our clients and their employees. Harvey Norman’s national presence and trusted household name provides our customers with confidence when referring their employees to the program. They know they will receive excellent service and a wide range of the latest brand name products at great prices.

Employees love the fact they can go into a store, touch the product, talk to our experienced sales staff, make a well informed decision and take their device with them – all in a single visit.

* These calculations are intended as a guide only. Customers are advised to seek advice from an accountant about their own circumstances.

EMPLOYEE BENEFITS

Easy application process

Large range of brand name products

No upfront cost and easy payment options

Fringe Benefits Tax exempt

Income tax savings

Example of employee savings*

Sam earns $65,000 a year and has decided to enter into a salary sacrifice arrangement. Under this arrangement Sam will sacrifice $2000 from his taxable income to purchase a laptop. The laptop is Fringe Benefits Tax (FBT) exempt because Sam will use it for work so his employer won’t be liable to pay FBT. The table below illustrates the PAYG tax that Sam will save with this arrangement.

Salary sacrifice agreement No Yes

Annual income $65 000 $65 000Less salary sacrifice Nil $2 000Taxable income $65 000 $63 000

Income tax payable including Medicare levy (2%) $13 608 $12 918

TAX SAVED = $690

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* These calculations are intended as a guide only and assumes the electronic devices being salary sacrificed are FBT exempt products. Customers are advised to seek advice from an accountant about their own circumstances.

Employees appreciate the fact that there are flexible repayments, no upfront cost, and at the end of it all they own the laptop.

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BUSINESS BENEFITS

Save on business costs with reduced input tax credits, workers compensation and payroll tax

Enhance your status as an employer of choice

Easy to use Salary Packaging Web Portal

Dealing with a trusted household name

Ongoing support provided

Example of business savings*

Businesses offering an electronic device salary packaging program which allows employees to purchase products from their pre-tax dollars will also benefit from business cost savings.

Number of employees 100020% take up the offer 200Salary sacrifice per person $2000Total salary sacrifice $400 000

Savings generated by salary sacrifice agreement

Input tax credit (10%) $36 364Payroll tax (5.45%) $21 800Workers compensation (0.50%) $2 000

TOTAL BUSINESS COST SAVINGS = $60 164

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Our customers and their employees enjoy a simple approach to salary packaging everyday. Follow these simple steps to get started.

STEP 2

We configure your customised Salary Packaging solution.

We help you:• Identify which products

are allowable.• Create a salary packaging

agreement.• Prepare the information to

appear on your portal.

STEP 3

Together we plan your salary packaging program launch.

We provide communications to let your employees know about the benefits and continue to be available for advice and support whenever you need it.

It really is that easy.

STEP 1

Contact us and one of our salary packaging specialists will guide you through the process.

1800 022 116sales@harveynorman business.com.au

Start the benefits today. It’s easy.