Summary

The Components entity records:

• The base components that make up an employee’s remuneration package.
• Whether these components can be cashed up i.e. rather than the employee receiving the cash, the company pays for the benefit.  For example medical insurance.
• Whether a component is liable for Fringe Benefit Tax (FBT).

Taxation Obligations

Non-cash Components are generally subject to FBT which is paid by the employer.

Cash Components are subject to income tax, which is paid by the employee.

Remuneration Packages

Remuneration packages are part of the total employee package, which is the total cost of employing a person. This includes the cost of cash and non-cash Components, FBT and the on-cost Components. On-costs are the employee-related costs incurred by an employer, such as training fees, the building lease or wages for support staff (I.T. and reception).