Hi all,
We run a not for profit organisation whereby we can provide the staff members with the benefit of salary packaging and also meal entertainment.
We are in the search of a salary packaging provider but thinking if we can do it in house. Provided we know all the rules and regulations related to this.
Question 1: In terms of Salary packaging for general living expenses- As per our understanding how the salary packaging provider operates is that in case the employee is under a mortgage or is paying rent, then the all they have to do is provide the documents showing these expenses namely Bank statement or rent agreement etc for substantiation.
The working model of the provider states that they will pay the employee every pay cycle the salary packaged amount say $611 per fortnight into their bank account and the payroll will pay the employee the remaining amount into the same bank account. My question is, if we follow the exact same approach where the employee get their normal pay and a reimbursement for the mortgage and rent payment, then what is it that the Salary packaging provider is doing any different than us? Can we all together avoid the middle party and the cost related to them?
Question 2: For meal entertainment expenses- Can we pay the employee the meal entertainment amount before they have produced any supporting documents like receiving the benefit first and then producing supporting documents?
Question 3- Credit cards payments. Can we have more insight on credit card payments. Can the employees generate their credit card statement which includes general living expenses but also includes meal expenses that they are planning to claim? How do we treat these?
In short, we don't mind providing the staff with salary packaging cards and meal entertainment cards who prefer to get these cards. But there are quite a few staff members that want the option of providing mortgage/rent statements and getting an equivalent amount in their account as the salary packaging provider would put in their account?
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