April 19, 2021

Common mistakes made by Non-Profit Organisations

Community Salary Packaging have found that many organisations in the not for profit / charitable sector are actually administering and reporting their internal salary packaging system incorrectly.

We have compiled a list of common mistakes made.

  • Insufficient substantiation recorded for employee fringe benefit reimbursement setups.
  • The incorrect gross up rate used when doing FBT calculations
  • Incorrect interpretation of Exempt Fringe Benefits such as Meal Entertainment and Entertainment Facility Leasing.
  • The incorrect amount reported on PAYG Payments Summaries
  • FBT Rebatable organisations providing salary packaging to staff without understanding FBT implications
  • Pool vehicles are ignored in FBT calculations because they are non-reportable.
  • Not maintaining employee motor vehicle log books
  • Vehicle fringe benefits ignored in FBT Calculations
  • Incorrect use of statutory value phase in rates for motor vehicles
  • Not implementing simple FBT reduction strategies

If you wish to discuss any of the above topics that may relate to your organisation please do not hesitate to contact Community Salary Packaging on 1300 737 061