Hi, my company's salary sacrifice service provider (SSSP) recently refunded a largish sum in regards to one of our employees. The SSSP did not provide any detail in respect of the refund other than the employee name.
HR repaid the entire amount to the employee using a 'taxable paycode' (Sal Sac Refund) - so this amount had PAYG deducted and will be included as taxable wages on the employees Payment Summary. When i queried whether this was correct, the explanation i received was that this is how we always do it.
I am of the opinion that we need to know what the refund is in regards to - is it 'before tax' and/or 'after tax' deductions from the employees salary, as this will determine whether we should 're-tax' the amount when refunding the employee.
Am i on the right track?
1,729 views
2 replies