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The new Single Touch Payroll Phase 2 (STP2) rules turn the way we, as bookkeepers, treat salary sacrifice, on its ear. This change prompted us to take a fresh look at salary sacrifice: what it is, how and why we use it, how we report it now, and how that will change when STP2 has been adopted.
Salary sacrifice is a tool that has been used in remuneration planning for many years. There have been legislative changes in recent years that affect the net benefit and the way salary sacrificing is used. With STP2 on the horizon and a very different way of reporting salary sacrifice arrangements, this is an ideal time to roll the sleeves up and get stuck into a salary sacrifice refresher.
We discuss:
In this episode of Bookkeeper Radio we revisit salary sacrifice with our resident tax expert Darren Hagarty. Darren will refresh our understanding of the guiding principles of salary sacrifice and why it is used as part of an overall remuneration planning strategy. We also chat about the new salary sacrifice reporting requirements of STP2.
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