Hi
we have calculated the Post-tax contribution made by our employee and due to him terminating early, we have over collected.
For example, Post tax contribution $3500 however the FBT payable amount is $3000.
How do we adjust this and what normally happens when the employee contribution figure is over the FBT payable amount for this FBT year.
does this 'rollover' as a contribtion for the new year, if the novated lease is still Active?
Hi @JaneD_86,
Thanks for your patience so far.
Where a remuneration arrangement entered into between an employer and employee requires that the employee makes contributions, from after-tax salary income, to the extent of reducing the taxable value of any car fringe benefits to nil, only these amounts can be regarded as consideration for the provision of the car fringe benefits, due to the remuneration agreement that is in place.
Amounts that are paid to the employer in excess of these amounts are not recipient's payments in this year, and can be either refunded to the employee, or dealt with as agreed between the employer and employee, including being set aside for a later FBT year.
Hope this helps!
Hi @JaneD_86
Your question has been asked and answered previously on the Community forum.
Please refer to this post on Novated lease credit refund for the details.
RichATO
1,419 views
7 replies