Hi,
The car allowance of $12,000 is the part of salary package for employment.
We, as the employer, decide to process a flat rate of $461.54 each time to the employee along with fortnightly payroll, with no calculation for business usage costs. The car allowance will be paid in advance to cover anticipated costs, and paid regardless of whether the employee incurs an expense. The allowance would not be considered necessarily fully expendable, as no vehicle records are required to be provided by the employee.
Do we, as the employer, need to withhold PAYG at the very beginning when processing the car allowance? Or if we should start to withhold PAYG at some certain point only?
We beleive the car allowance is superable, but just want to make sure there is super guarantee liability.
Many thanks in advance.
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