Salary Sacrifice (to other benefit, OTE)

Aimee Slatter

Sep 23, 2024

912

🎯 The reporting of payments for Salary Sacrifice (to other benefit, OTE) are now included per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Salary Sacrifice (to other benefit, OTE) is reported separately under Salary Sacrifice Type Code = O.

🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.

Salary Sacrifice (to other benefit, OTE) is applicable when you have established an effective salary sacrifice arrangement and the Payee requests to forego part (either percentage or dollar value) or all of their salary or wages for other approved items such as a novated lease (Fringe Benefit) or a portable electronic device (Exempt Benefit). Please visit the ATO's Website to learn more about the requirements for an effective salary sacrifice arrangement and the types of benefits that can be included.

Salary Sacrifice (to other benefit, OTE) uses the $ (or % of Rate Per Hour) set within the Deduction and Leave Entitlements are not applicable. Payments with this pay type are considered to be W1 (Total of Salary, Wages & other payments), Taxable and Ordinary Time Earnings (OTE).