[deactivated account] Sat 18 Aug 2018 11:27PM
This was discussed in the $ Jedi and we think it is a good idea for Jeder to use Community Sector Banking as the platform for Salary Sacrifice. A proposal is open for this atm and any dicussion can happen here in this thread.
Poll Created Sat 18 Aug 2018 11:29PM
Salary Sacrifice Closed Sat 25 Aug 2018 11:02PM
No obejections from the 8 people who voted. We will include this in the Dollars Handbook.
That Jeder uses Community Sector Banking as its preferred method for all of its Salary Sacrifice arrangements, as it minimises administration for the organisation. Jeder will also consider other indivdual arrangements that do not create additional administration.To discuss please go here: https://www.loomio.org/d/zKd7gON2/salary-sacrifice
|Results||Option||% of points||Voters|
|Undecided||0%||22||LD AB O DU|
8 of 30 people have voted (26%)
Sun 19 Aug 2018 8:50AM
Happy to support either way. Minimising admin work is a consideration that leans more towards agree.
Sun 19 Aug 2018 12:58PM
Happy either way- I agree in minimising the "administration" for Jeder but suspect minimising in one area may increase it in another area (i.e. if we decrease this for Jeder then it may have an unintended consequence of more admin for the individual)
Sun 19 Aug 2018 9:45PM
I don't know enough about it but, if that's the best and those affected by it agree, go for it...
Mon 20 Aug 2018 12:50AM
I see this approach as a way to minimise risk to the org, yet allowing the individual the choice (within the Community Sector framework).
Tue 21 Aug 2018 3:03AM
It won't affect me personally so I. Abstaining, but agree with the simplicity of this approach for Jeder.
Tue 21 Aug 2018 3:04AM
It won't affect me personally so I am abstaining, but agree with the simplicity of this approach for Jeder.
Yvonne Sun 19 Aug 2018 2:28AM
I, and possibly like a few other people have one or two credit cards that I have to manage and remember PASSWORDS(eekkk) I would prefer if we could keep it to our credit cards, as I did when I salary sacrifced
[deactivated account] Sun 19 Aug 2018 7:12AM
Thanks Yvonne-I have the same password for all of my cards to make it easier to remember. I have used the community sector banking card for salary sacrifice and it is very easy and does not really require any 'management' There is also another card for use for entertainment which can be claimed up to around $5K via Salary sacrifice. I hear that you prefer the credit card option, what if the proposal was that 'Jeder's preferred method for Salary Sacrifice is via Community Sector Banking as it minimises administration for the organisation. Jeder will also consider other indivdual arrangements that do not create additional administration.'
Sara Thu 23 Aug 2018 7:28AM
Sounds like a great idea, [email protected] would you be available to help make sure i understand and meet Jeder's requirements at the admin end?
[deactivated account] Thu 15 Nov 2018 6:20AM
This is the where you can find the forms and information for the B-Packaged Community Sector Banking Salary Sacrifice card through the Bendigo Bank. https://www.communitysectorbanking.com.au/banking/b-packaged
Dont' forget to include your certified ID with your application.
You will need to include Jeder's cutomer number. It is 34778571. For any direct debits that you want taken from this account (eg for loans), you will also need to lodge the periodic payment form.At this stage we are not registered for the B-Entertainment or B-optimised cards. could all coaches please also share this info with members? @jasonemmins @lynnlennon @rachaeleyles @michaelakennedy @lisazulfiqar
Jason Emmins Thu 15 Nov 2018 7:12AM
Thanks @kerry63 for this- will share with the COSSIE's down South.
I am also going to put up a proposal that the board would like everyone to consider around Salary Sacrifice/Fringe Benefits. I should have this done by the end of the weekend.
[deactivated account] Sun 2 Dec 2018 6:02AM
The process with Community Sector Banking is a bit is clunky, so here are some instructions:
Post the completed Community Sector Banking form to Michaela along with a certified copy of your ID, she will authorize and forward it to them
We do not currently offer B-entertained, so only select B Packaged
They then send the card to Michelle who will forward it to you, so please let her know your postal address when you send her the application.
For the Jeder Salary Sacrifice form, you will need the details of your Community Sector Banking account to be able to fill this in.
Lisa Zulfiqar Sun 2 Dec 2018 8:13PM
Kerry can this amount be lower if you want or is it set at 15900. And am i correct in understanding this is reset at 1 April each year, amount varies depending on ATO set amount?
[deactivated account] Sun 2 Dec 2018 8:40PM
The limit is 15900-it can be anything from zero to this amount
Lisa Zulfiqar Sun 2 Dec 2018 8:54PM
Is the date part correct , so if i take that amount now do i have to have paid back by 30 March
[deactivated account] Sun 2 Dec 2018 9:57PM
yep-it is the FBT year. You don't pay anything back, you need to have spent all of the money you have put on the card within each FBT year. an easy way to do this is to either pre pay a bunch of bills, or to buy gift cards.
[deactivated account] Fri 22 Mar 2019 3:56AM
We have circulated the details/process for salary sacrifice and have had a request to consider one other option other than using the Community Sector Banking Card. The proposal was to also include an option of having a payment made into a loan/lease account to an organisation. The decision to go with the card was to ensure compliance and reduce admin. if we were to offer the other options how would we ensure these two things? moving towards a proposal after discussion.
Jason Emmins Mon 25 Mar 2019 10:43AM
Why are we considering another proposal for Salary Sacrifice? We have consensus that we will only use Community Sector Bank for all Salary Sacrifice arrangements- I am a little confused as to how this discussion is continuing?
[deactivated account] Mon 25 Mar 2019 5:40PM
Hi Jason, yes good point, and I did not feel that it was my decision to make alone, so put it up for discussion.
Michelle Dunscombe Sun 31 Mar 2019 12:50AM
@jasonemmins I'm a unclear when the proposal for CSB as the only Salary Sacrifice option was discussed it was a decision last year that it was the preferred but not the only option. As this directly impacts my situation as I currently Sal Sac to my mortgage which is compliant and doesn't add any cost to admin that I'm aware of. I did discuss with @kerry63 being able to continue my arrangement hence her question above. I do not want to have to change what I have been doing for years or open a CSB account.
Michaela Kennedy Sat 6 Apr 2019 11:49PM
I agree, my Sal Sac pays my rent. This has been set up since the beginning.
Brett Pischke Sat 30 Mar 2019 9:36AM
I am happy with the card. what ever reduces the fees for the organisation
Michelle Dunscombe Sun 31 Mar 2019 12:42AM
I am not happy to use Community Sector Banking as I've had my salary sacrifice set up to my mortgage since joining Jeder and don't believe it adds any complexity to the system.
[deactivated account] Sun 7 Apr 2019 6:19PM
My question is what do we need to have in place to ensure compliance if we continue to offer this as an alternative? In the past we have not always done Salary Sacrifice correctly. For example, in some instances people have been paid directly into their bank account. This is a risk to the organisation, not the indivdual.
Do we need a copy of the loan agreement for example, or for rent:
1. A copy of the Rental Agreement OR
2. A Statutory Declaration
3. Notice from Landlord with bank account details (If payment to be made direct) (this is from another org's process)
Some payments take more admin input to process, eg car leasing arrangement tend to be more complex. Also if there is multiple payments required for various things, then the card is the better option from an org point of view. If anyone has any other suggestions, I can include them in a proposal and put it up here to all members.
Dee Brooks Mon 8 Apr 2019 2:30AM
I don't know what we need in place to ensure compliance? I think that's the first question that needs a legal answer...
I abstained from the last proposal because the proposal asked if people wanted to move to the card (by choice) and I said no, but was happy for others to...
[deactivated account] · Mon 13 Aug 2018 8:41PM
Yvonne · 3 days ago
Just a query....I like the scenario that you posted Kerry...If the yacht was indeed $11K, could Louisa purchase it from her bucket IF, as stated, Jeder is a not for profit and therefore can offer salary sacrificing for the value of $16 050( I think this is the correct amount ??) but it does need to be clear in the start of ones work and needs to be black and white, not grey!! There are black and white considerations re this...FBT etc...
Kerry H · 3 days ago
You can request up to around $16K as wages through salary sacrifice. You cannot be paid this directly, however. Jeder can request a community sector banking mastercard card for you for this. There are specifications on what this can be spent on. 'Everyday items' Yachts do not seem to be on the list...here is more info https://www.google.com.au/url?sa=t&source=web&rct=j&url=https://www.communitysectorbanking.com.au/wp-content/uploads/2017/04/Salary-packaging-with-us.pdf&ved=2ahUKEwiGsMLJtuTcAhUQdt4KHTOJClQQFjABegQIBxAB&usg=AOvVaw1avAMKM12pSNo76-Mcj41l
Yvonne · 2 days ago
can the salary sacrifice be paid against the staff members own Mastercard??
Kerry H · a day ago
technically yes, and you need to be able to prove that it has only been used for 'everyday expenses' (sorry, still no yacht). the community sector card is easier for the org as it already meets ATO requirements.
Yvonne · 19 hours ago
Is there is definition of very day expenses ??Yes, no yacht!!!
Kerry H · 19 hours ago
It is a little unclear:
Rent or mortgage repayments
Credit card and personal loan payments
Expenses via a Salary Packaging and Employee Benefits Card (these cards can only be used in the ways listed here).
Household utility costs such as gas, electricity and water
Car expenses including petrol and registration
Health insurance premiums'
School fees, child care fees
And much more! (this is the unclear part!)
It is quite clear on how it cannot be used:
must not be used for BPay, Direct Debit, gambling, firearms, adult entertainment, cash advances, or at the post office.
You'll need to spend all of the money on your card prior to the 31st of March to ensure you make the best of the Cap benefit available to you this FBT year.
Sara · 19 hours ago
I like the idea of the community sector card for FBT, this would assist everyone and take the strain off finance as to what is acceptable etc- great idea @kerry63
Kerry H · 19 hours ago
yep: The community sector banking card has had a private ruling from the ATO. :thumbsup:
Yvonne · 19 hours ago
I was just checking re the above, and yes not much has changed in regards to NTB in the last few years...(not from what I can see)....yes, non tax benefits payment can be made directly to a staff members credit card-that's what I was doing for a number of years, when I salary sacrificed..it makes it easier than to get another credit card...
Kerry H · 18 hours ago
If you use your own credit card, you are meant to provide evidence on what payments have been for-I remember having to take in a pile of receipts each quarter which was then kept on file with the org. I have been using the community sector card for about a year and it is very easy, and now that Jeder is set up with them, adding new cardholders is also easy.
Yvonne · 18 hours ago
I also was permitted to use my own credit card and once a year (or when requested) i provided a copy of my credit card statement- no receipts or anything like that ...I worked for a very large NFP however
Sara · 18 hours ago
Kerry just to clarify so you are saying paying the balance of someone's personal credit card is not an allowable expense, unless they provide the receipts for the purchases made using that credit - or is this just for FBT payments?
Yvonne · 18 hours ago
I think it has to be regular payments on a staff members CC, who has been approved salary sacrifice. I believe that a copy of the staff members CC payment would suffice as proof...
Kerry H · 18 hours ago
The payment needs to go directly to the card and it must always be in debt. You need evidence of payments for everyday expenses to the value that you has been salary sacrificed. If audited it is the org and not the individual who needs to provide the evidence. This may be why most financial institutions now offer a specific salary sacrifice card. It will not allow purchases that are not compliant, therefore a safe options for orgs.
Yvonne · 18 hours ago
Yes, it was always in deficit(only just) but I paid all matter so things on the card....groceries, household items, insurances, water and gas rates, etc etc etc