Total Employment Cost (TEC)

Displays the value of salary packages at two different levels. This level represents the cost to the employer.

Total Package Value (TPV)

Displays the value of salary packages at two different levels. This level represents the value to the employee.

Model Number

Enables you to model several packages and package scenarios that share the same effective date. Set a unique increment for the model number to number each package modelled with the same effective date. When you use the same effective date, the model number automatically increments.

Package Status

Indicates whether you are working with a salary package that is proposed (planned), current (existing), or history (finalized). When you first begin modelling a package for an employee, the system automatically sets the status to proposed. After you've confirmed and enrolled a package for an employee, the system changes the status to current. When the status is history, you're looking at an employee package that has been confirmed and enrolled, but is no longer in effect.

Employee Salary Package - Package Model

PKG_MDL_TBL

Compensation, Salary Packaging AUS, Create Salary Packaging, Employee Salary Package, Package Model

Establish the salary package and specify options that drive the calculation of package values for modelling purposes.

Employee Salary Package - Base Components

PKG_MDL_BSE_CMP

Compensation, Salary Packaging AUS, Create Salary Packaging, Employee Salary Package, Base Components

Enter base component details that drive package value calculations on an annual basis. Components, effective for only part of the year, have a full year equivalent amount that appears on this page.

Employee Salary Package - Budget Entry

PKG_CNF_BUDGETS

Click the Bud (component budgets) button on the Employee Salary Package - Base Components page.

Set up a budget for the planned expenditure of a component.

Employee Salary Package - Additional Comp (additional compensation)

PKG_MDL_ADD_CMP

Compensation, Salary Packaging AUS, Create Salary Packaging, Employee Salary Package, Additional Comp

View the additional component values (expressed as an annual value) associated with the Base Components page. For each component, view the associated additional components as well as component totals.

Employee Salary Package - Base Comp (Per) (base compensation [per])

PKG_MDL_BSE_CMP_PE

Compensation, Salary Packaging AUS, Create Salary Packaging, Employee Salary Package, Base Comp (Per)

Enter base component details that drive package value calculations on an annual basis. Components, effective for only part of the year, have a prorated amount that appears on this page.

Employee Salary Package - Addtnl Comp (Per) (additional compensation [per])

PKG_MDL_ADD_CMP_PE

Compensation, Salary Packaging AUS, Create Salary Packaging, Employee Salary Package, Addtnl Comp (Per)

View the additional component values (expressed as part year values, depending on the start and end dates of the components) associated with the Base Comp (Per) page.

Employee Salary Package - Salary/Tax

PKG_MDL_SAL_NET

Compensation, Salary Packaging AUS, Create Salary Packaging, Employee Salary Package, Salary/Tax

View the impact to the employee's salary and tax obligations based on the package model.

Package Start Date and Package End Date

Define the period for which the individual package is effective. For a new package, the default start date is the effective date.

The default package end date is a year after the package start date.

If your remuneration is effective for periods other than a year, override the end date to reflect the appropriate period of the package. When modelling packages for periods other than a year, enter all values as annual values. This is also true when entering component values—all amounts are annual amounts.

When determining the default end date, the system identifies the employee's pay frequency—from the pay group on the employee's job record—and determines the end date based on a year. For example, a package for a fortnightly employee has an end date 26 fortnights after the package start date. This provides different results in a leap year than in a non-leap year. A package for a fortnightly employee who starts April 1, 2000, has a default end date of March 31, 2001, but a package for the same employee that starts April 1, 2001, has a default end date of March 30, 2002. Twenty-six fortnights is consistently 364 days, but the year 2002 has 366 days, so there is a difference.

This means that when defaulting the package period it may not always appear to be the annual anniversary exactly.

Confirmed

Select when a modelled package has been approved and the employee is ready to be enrolled into it.

Note. The package enrolment process establishes compensation rate codes on the employee's job record based on the details included in the employee's confirmed package. Global Payroll then uses this information to facilitate payments to the employee. Confirming a package does not automatically enrol the employee in the package. The status of the package remains Proposed until after you run the package enrolment process.

De-enrolled

Select to de-enrol an employee from a confirmed package. The check box is unavailable for entry during modelling because it is used only when managing enrolled packages.

Review Date

Indicates when the employee's salary package is due for review. The default date is the package end date. To flag this package for review at an earlier date, override the default.

Tax Scale

Part of the modelling process is the calculation of the employee's Pay As You Go (PAYG) tax liability. The tax scale is used in the notional online calculation of the gross to net value of the package.

The default is the value you set up on the PAYG Tax Scales page, but you can override it while modelling an employee's salary package.

Note. The system warns you when you try to save the package if there is a difference between the package tax scale and the default tax scale on the PAYG Tax Scales page. If you want the tax scale used in packaging to be reflected through payroll, update the payee tax scales.

Payroll Tax State

Defaults from the employee's job record. You can override this value during modelling. Set up payroll tax state values on the Sal Pkg Payroll Tax Rates AUS page.

During modelling, you may need to calculate an oncost of payroll tax. To calculate the value for payroll tax, the process looks at the payroll tax state and obtains the values set on the State Payroll Tax table. A warning message appears if the state entered is different from the employees Job Data record. You can ignore this message if necessary.

Note. Payroll tax liabilities are reported based on the payroll tax state on the employee's Job record. If you want the value used during packaging to be used when reporting payroll tax liabilities, update the employee's Job Data record.

Template ID and Rule ID

Select a template ID to default components or groups of components into the employee's package model. If you've already defined templates using the Package Template page, specifying an ID saves you from entering the same components repeatedly for different employees who qualify for the same salary packages.

Select a rule ID to specify the rules that the system uses to validate the employee's salary package when the package is saved. Use package rules to ensure that the modelled package complies with legislative requirements and company policies.

Note. If you have associated a template ID or rule ID with job codes or positions in your organization, the system populates the IDs based on the employee's job code or position. You can override the default value during package modelling.

Package Method

The method of packaging used when modelling. Select:

Top Down (starting at the TEC): Enter the total (target) employment cost into the Target TEC field. As components are added or values changed, regardless of whether they are paid by the employee or employer, the cash component is reduced.

Middle Out (starting at the TPV): This approach enables you to enter the total package amount you want to achieve. The employer payments (oncosts) are not taken into account with the TPV.

Bottom Up (starting with an individual component): The Package Method controls the display of the Target TPVand Target TEC fields.

Target TPV or Target TEC

If you select Top Down or Middle Out as the package method, specify a Target TEC or Target TPV.

When modelling using these methods, a package balance is calculated based on the value of components and the specified target value. When entering the package details, select a component to assume the value of the balance by selecting the Bal (balance) check box for that component on the Base Components page (annual) and Base Comp (Per) (period) page. This saves you the time and effort required to manipulate component values to reach a zero balance.

Package Components

As part of the package template you specify for this employee on the Employee Salary Package - Package Model page, all of the components that you defined on the Package Template page appear by default. Add new components or remove any default components from the package model for the employee.

Create components using the Package Components pages.

From and To (dates)

Indicates the period for which the component is effective. These dates appear by default from the Package Start Date and the Package End Date fields you entered on the Employee Salary Package - Package Model page; you can change them to reflect the correct effective period. The dates for a component must be within or equal to the package start and end dates.

When you are modelling packages for employees, you might need to indicate that components are not effective for the entire period of the package. This could be because one of the attributes or details of the component changed during the course of the package or simply because the component no longer exists. Use the component from and to dates to represent either scenario.

To reflect the change of details, modify the To date for the existing component. The component to date should be the day before the effective-dated change. You can then insert another component into the package. Select the same component, modify the dates to reflect the effective dates of the new details, and enter the component details.

TPV and TEC

These amounts are automatically updated based on the values entered for the components, the additional components, and the calculation method that apply to the component.

Bal (balance)

If you have selected a Package Method of Top Down or Middle Out, identify a component that should be the default package balance by selecting this check box for the appropriate component. Select only one component to be the balance; it must have a component type of flat amount.

The salary component is the most common component to select as the balance. By selecting this check box for the salary component, the current TPV and TEC are calculated in the Package Annual Totals group box. The Balance Total TPV/TEC starts at 0 or as close to 0 as rounding allows.

The system calculates the values for the component. For each component, you can see the value of TPV and TEC. These values include values of any additional components. For example, for a salary component, 90,000 AUD might add to TPV and 96,300 AUD might add to TEC. The difference in values is the additional component of payroll tax specified for this component.

Note. You don't have to select a component to be the balance for the package. By not selecting a component, the balance is calculated and appears as the detail for each component added. Manually adjust the value of the package components to try to reach a package balance as close to zero as possible.

Dtls (details)

Whether you identify a default balance for the package, enter the component details for all components that have not been calculated.

To enter the component details, click the Dtls button for the component. This accesses a corresponding details page for each component that enables you to enter component details. The details that appear in each details page are determined by the component type you define on the Package Component Table page.

Most of the details are required to support the calculation of the Fringe Benefits Tax (FBT) and Goods and Services Tax (GST) liability, and subsequently, the component value.

The method for calculating the FBT and GST varies based on the tax category, identified by the component type.

Note. Consult the Australian Taxation Office (ATO) for more information regarding the terms or requirements for calculating tax.

Bud (budget)

Click to enter budget information on the Budget Entry page for each component.

Note. Before you can access the Budget Entry page, enter the component value details in the corresponding details page for each component. If you don't enter any values for a component, the budget amounts are all zero. You must also create a pay calendar on the (Salary Packaging) Pay Calendar GP page.

Current TPV/TEC and C/F Target TPV/TEC

The Package Annual Total group box displays the target total TPV/TEC, the current TPV/TEC, and the balance total TPV/TEC. The C/F (carry forward) target TPV/TEC also appears, but it is only relevant when making effective-dated changes to a confirmed package.

As you enter or change figures, the current TPV/TEC values update, and if you have selected the top down or middle out option on the Package Model page, subtract this value from the C/F target TPV/TEC value.

For example, if you selected a package method of TPV on the Employee Salary Package - Package Model page and entered a target TPV of 90,000 AUD, this amount appears on the Target TPV/TEC and the Balance Total TPV/TEC for the package annual totals. The balance is 90,000 AUD if you have not entered any component details.

The C/F Target TPV/TEC field populates when an employee changes packages mid-package period. Because package amounts are calculated from the start to end dates, a change midway through that period results in a carry forward amount.

Tax Exemption Amount

Some component types are eligible for a tax exemption based on the rules defined by the ATO. For different component types, a tax-free threshold applies, whereby the taxable value can be reduced before the calculation of the FBT liability. If you are packaging a component that is eligible for the tax free threshold, enter the amount of the tax-free threshold in the Tax Exemption Amount (Annual) field to enable accurate calculation of the FBT liability and the component value.

Tax Adjustment Amount

This is almost the reverse of the tax exemption amount. Where the tax exemption amount reduces the taxable value before the calculation of the FBT liability, the tax adjustment amount increases the component value after the calculation of the FBT liability.

Employee Contribution

Like the Tax Exemption Amount and the Tax Adjustment Amount fields, the Employee Contribution field appears on most of the Details pages for component details, especially where the component type dictates the calculation of an FBT liability. The employee contribution is an amount paid by the employee to the employer as a contribution toward the cost of the benefit. The taxable value of the benefit is reduced by the amount of the contribution.

GST Amount

In the majority of cases, if you have defined GST for the component in the GST Calculation field on the Expense Data page, an additional GST field appears on each of the Details pages. The value you select on the Expense Data page defines how the GST, if any, can be tracked as an expense.

FBT Calculation Method

Drives the calculation of FBT. There are two methods of calculating FBT for a motor vehicle:

Statutory Formula: The Motor Vehicle FBT Statutory Method Details page appears.

Operating Cost: The Motor Vehicle FBT Operating Cost Details page appears.

Capital Cost

Enter the original value of the vehicle for calculation of FBT.

Estimated Kilometres

To accurately calculate the FBT liability, enter the estimated distance the motor vehicle will travel.

Note. All other fields on this page are for information only.

FBT Calculation Method

There are two different methods of calculation for the FBT liability on a car parking benefit:

Market Value: The Car Parking FBT Market Value Method Details page appears, enabling you to enter and calculate FBT details according to the market value of the car park, when the car parking is leased on the employee's behalf or on the employer's site.

Commercial Parking Station: The Car Parking FBT Commercial Station Method Details page appears, enabling you to enter and calculate FBT details when the car parking is paid for as an ongoing, daily benefit through a parking station for the employee.

After you select a method and click OK, another page appears and prompts for other details related to the component.

Market Value (annual)

Enter the estimated market value of the car parking. For example, an employer pays Star's Property Management 3,000 AUD per year for the leasing of the car park on the employee's behalf. An independent evaluation of the market value of the car park has been quoted at 2,200 AUD. The employer wants to pass on the total cost of the car park to the employee.

When calculating the FBT on the car park component, tax is payable only on the market value of the car park—in this case 2,200 AUD. The employee makes no contribution for the benefit and no tax exemption applies.

In the Tax Adjustment Amount (Annual) field, enter 800 AUD, which is the difference between the market value and the cost to the employer.

When the value of the component and additional components are calculated, the value of the 2,200 AUD is used in the calculation of tax, but the value of the base component (not including additional component values) is 3,000 AUD. By using the tax adjustment amount, you can accurately calculate the tax on the car park and ensure that the full cost of the car park is passed on to the employee in the form of an increased component value.

Add To Gross Pay

This check box is selected if you also selected it on the Base Component page. It enables you to identify components to include in the notional calculation of PAYG tax liabilities. At the time of modelling, the value of components with the Add to Gross Pay check box selected are aggregated and the PAYG tax liability is calculated on the total. Typically select this check box for components representing cash payments (such as salary and allowances).

Base Component Amount TPV/TEC and Component Total TPV/TEC

Totals appear for the base component amount for both TPV and TEC, the amount entered on the Base Components page, and the component total, which is the base plus additional components.

The base component amount represents the value of the component independent of any additional liabilities.

The component total TPV/TEC adds the additional component values and the base component amount to give a total cost of the component as it effects TPV and TEC.

Type

For each component, additional components may exist for FBT, GST, and payroll tax. This information appears here.

Amount

Displays amount calculated for component.

For FBT, displays the FBT package value with or without including the GST gross-up value if the Gross Up Calculation method is set to Type 1 -Tax Credit Claimed on the Additional Components - Additional Comp page (Compensation, Salary Packaging AUS, Define Salary Packaging, Additional Components ). If the Gross Up Calculation method is set to Type 2 - No Input Tax Credit on this page, the GST gross-up amount is not included.

Enroll Amount

This amount is the amount passed to the employee's compensation record when the Salary Packaging enrolment process is run.

For FBT, displays the FBT package value but does not include the GST gross-up amount.

Note. The Enroll Salary Packaging process uses the Enroll Amount value when it creates the employee's compensation record. The payroll process as well as the Collect FBT Earns AUS and Payment Summary processes use this value when calculating the FBT reportable earnings for the employee's Payment Summary Certificate.

Note. The Enroll Amount field may or may not be the same as the amount displayed in the Amount field. If the Gross Up Calculation method is set to Type 2 - No Input Tax Credit on the Additional Components page (Compensation, Salary Packaging AUS, Define Salary Packaging, Additional Components), the GST gross-up is not included in the Amount field and there is therefore no difference between the Amount and the Enroll Amount.

Adds To TPV and Adds To TEC

Controlled by the setup of the additional component, where you specify if the additional component Adds To TPV or TEC.

For example, the calculated FBT liability for a car parking component might be 2,216.94 AUD. This appears in both the Adds to TPV and Adds to TEC fields. All values adding to TPV add to TEC (the TEC is inclusive of all TPV values).

The payroll tax liability might be calculated as 164.78 AUD. This value appears only under the Adds to TEC field because the component definition indicates the package level for this additional component to be TEC (which means it has no effect on TPV).

Target Total TPV/TEC, Current TPV/TEC, C/F Target TPV/TEC, and Balance Total TPV/TEC

These totals are consistent with those shown on the Base Components page, identifying the target, current, and balance totals for TPV and TEC.

Salary

Based on the package tax scale that you selected on the Package Model page, the system calculates the employee's gross salary, tax (liability), and take-home pay ( net salary) for each of the following pay frequencies:

• Yearly

• Monthly

• Semi-monthly

• Fortnightly

• Weekly

  Note. This tax calculation does not take into account any tax rebates or rounding in calculating the tax liability and is used only as an estimate of the eventual tax liability. Because it is possible to vary payments through the payroll, and the payments might alter either the gross salary or the tax amounts, these figures are not regarded as an exact reflection of payments that are made through Global Payroll.

Find Applicants - Applicant Model

HRS_PKG_MDL_APP

Recruiting, Find Applicants, Find Applicants

Click the Find Applicants button on the Find Applicants page.

Select Create Salary Package Model in the Take Action field for the specified applicant.

Record applicant salary packages.

Find Applicants - Base Components

HRS_MDL_BSE_CM_APP

From the Find Applicants - Applicant Model page, select the Base Components page.

Enter base component details that drive package value calculations on an annual basis for applicants.

Find Applicants - Budget Entry

PKG_MDL_BUDGET_APP

From the Find Applicants - Base Components page, click the Bud button.

Set up a budget for the planned expenditure of a component for applicants.

Find Applicants - Additional Components

HRS_MDL_ADD_CM_APP

From the Find Applicants - Applicant Model page, select the Additional Components page.

View the additional component values for applicants, expressed as an annual value, associated with the prior page.

Find Applicants - Period Base Components

HRS_MDL_BSE_PE_APP

From the Find Applicants - Applicant Model page, select the Period Base Components page.

Enter base component details (for applicants) that drive package value calculations on a prorated basis—in other words, the actual value of the component for the period for which it is effective.

Find Applicants - Period Additional Components

HRS_MDL_ADD_PE_APP

From the Find Applicants - Applicant Model page, select the Period Additional Components page.

View the additional component values (for applicants) (expressed as an annual value) associated with the prior page.

Find Applicants - Salary and Taxes

HRS_MDL_SAL_NT_APP

From the Find Applicants - Applicant Model page, select the Salary and Taxes page.

View the impact to the applicant's salary and tax obligations based on the package model.

Package Status

Displays Proposed for applicants. You can't confirm or enrol packages for applicants. The applicant would need to be hired, and then have the package confirmed and enrolled through the Employee Packaging pages.

Company

Select the company with the vacant position or job.

Job Code

The job code from the job requisition, which ensures that when modelling you are using the same defaults and rules that apply to the job for employees. The job code is not saved with the applicant model. It is used only to initialize the Template and Rule ID fields.

Tax Scale and Payroll Tax State

These values are used in the calculation of gross to net income figures and payroll tax liabilities. However, if the applicant is not an employee, enter these values or select from the list of values.

Find Applicants - Copy Applicant to Employee

HRS_PKG_APP_CPY

Click the Find Applicants button on the Find Applicants page.

Select Copy Applicant to Employee in the Take Action field for the specified applicant.

Copy applicant salary packages over to the Employee Salary Package component. The Copy to Employee ID is the ID you created when the applicant was hired. When you select the Confirm Copy check box, the applicant's ID and salary package are copied over to the Employee Salary Package component. This enables you to then view and confirm the applicant's package details as an employee.