Mistral Salary Packaging – an Overview
 


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Introduction
 

Mistral Salary Packaging was developed to service the growing marketplace for salary packaging solutions for employees of various different Australian organisations. It is especially useful for Public Benevolent Institutions (PBIs), public hospitals and not-for-profit hospitals and their employees, who are recognized by the Australian Tax Office as deserving of Fringe Benefits Tax exemptions due to the difficult nature of their work, and the relatively poor compensation that they enjoy. However, it is also useful for rebatable employers, which may take advantage of the Fringe Benefits Tax reductions offered by the ATO, and commercial organisations, all of whom may take advantage of exempt benefits and salary packaged motor vehicles. A new category has been established for religious practitioners, who may be permitted to sacrifice a percentage of their stipend to a broad range of exempt benefits.

 

This web page gives an overview of the Mistral Salary Packaging system, its functional features, its security features, and its flexible licensing features. A price list is also included.

 

Visitors are welcome to browse the system with a ‘guest’ login. This gives full access to add, delete or update users, clients and payees, with restrictions on the range of salaries available, and the understanding that all changes are only effective for the one login session. Each screen has comprehensive menu-driven help text which fully describes all of the functions and calculations.

 

 

Functional Features

 

·         Mistral Salary Packaging maintains a database of users, clients and payees for each licensed company. Payees may be optionally linked to clients, allowing certain client values to default for each payee, and for payee summary reporting for each client.

 

·         Users, clients and payees may be added, updated or deleted at any time by authorised users of each company’s system. Any deletions are only performed after the user confirms that this is what is really intended.

 

·         Client data includes name and address, default payment frequency (weekly, fortnightly, monthly, quarterly or annually), reimbursement frequency, and type of client. Mistral Salary Packaging differentiates between Public Benevolent Institutions, Public and Not-for-profit Hospitals, Rebatable Employers, Religious Institutions and commercial organisations for its treatment of Fringe and Exempt Benefits.

 

·         Payee payment and reimbursement frequencies default from the client’s payment and reimbursement frequencies, but may be overridden for individual payees. Hence, there can be any combination of different payment frequencies for payees of any one client. Additionally, payees do not need to be linked to a client, allowing individual salary packaging for payees.

 

·         Payees may be stored (and ordered) by Firstname Lastname, or by Lastname, Firstname depending on the client’s preference. Data includes the contract salary, the hours worked per pay period and the hourly rate. Only two of these are entered for each payee – the program calculates the third figure.

 

·         Payees may be salary packaged for a portion of the FBT year, where benefits may be enjoyed at a higher rate than for the whole of an FBT year. In this case, the annual limits of FBT caps are still maintained. You may also impose a cap on the amount of allowable fringe and exempt benefits as a percentage of the annual salary.

 

·         Other payee data includes information from an employee’s Withholding declaration, and any Medicare levy declaration, required to calculate the correct withholding tax.

 

·         Withholding tax is automatically calculated by the Mistral Salary Packaging program, using the latest available tax rates and formulae, with the ability to vary all relevant parameters, such as:

o        Has the Payee provided a Tax File Number, or is the Payee exempt from needing a TFN?

o        Is the payee an Australian Resident?

o        Has the Payee claimed the Tax Free Threshold?

o        Amount the Payee has claimed for Rebates and Family tax assistance?

o        Details of any Medicare levy variation declaration.

o        Is the Payee entitled to Annual Leave Loading?

o        Does the Payee have a HECS accumulated debt?

o        Does the Payee have a SFSS accumulated debt?

 

·         A 'proposed' package may be copied to a 'current' package at any time, allowing a basis for comparison between two salary packaging scenarios. The proposed package may be compared to either the 'current' package or an unpackaged scenario, allowing you to view savings in either relative or absolute terms. Additionally, the details of the 'current' package may be viewed at any time, including details of tax and motor vehicle calculations. Options are available to enable entry of proposed benefits for each category, either annually or by pay period.

 

·         The Salary Package Proposal screen allows variable entry of specific Fringe and Exempt Benefits appropriate for each employer type, by Payee, either as an Annual or Periodic amount. The Mistral Salary Packaging program automatically calculates the unentered Periodic or Annual value. Details of payment arrangements and account numbers may also be entered for each proposed benefit. Links are available to ATO information for each category of Fringe and Exempt benefit.

 

·         A ‘calculate’ button is available at any time to instantly calculate the effects of all entered benefits on the salary package. It shows the tax saving and net benefit to the Payee, and a comparative analysis between the current and proposed salary packages on the SAME screen as the benefits are maintained. The screen also displays the gross equivalent of the whole salary package. This benefits the Payee by calculating an equivalent salary (without packaging) that would need to be earned for the same cash position. This feature benefits the client organisation by showing a competitive salary for the Payee’s job.

 

·         An ‘optimise’ button is available to select the optimum mix of Fringe Benefits that will yield the maximum value of cash and fringe benefits less any deductions for employee contributions to the package. This major feature of Mistral Salary Packaging removes the need to ‘play with the figures’, as it automatically calculates the best result for the given salary, exempt benefits and motor vehicle package.

 

·         The Tax Calculator is enabled to calculate a Gross equivalent from an entered Net amount.

 

·         Calculations also account for any Superannuation Surcharge Tax, which may apply to higher salaries.

 

·         A fully functional motor vehicle calculator can calculate the taxable value of a vehicle using either or both of the Statutory Method and Operating Cost Method. Optionally, the calculated value may be loaded to the Fringe Benefit Proposal.

 

·         A proposal form, which shows details of all entered Fringe and Exempt Benefits, and some relevant calculated amounts, can be produced from this same screen at the click of a button. The proposal is designed as a proposal from the Payee to the Employer, for subsequent employer approval.

 

·         Each screen has context-sensitive help, which fully explains the meanings of all data on the screen, and the functions and inner workings of all buttons and calculators. The help screens are indexed and framed for speed and ease of finding relevant information.

 

All of this is available in a self-contained, web-based tool, allowing access from anywhere at any time.

 

 

Security Features

 

·         Access to Mistral Salary Packaging is via a secure, encrypted company code, user code and password. Files containing user data, client data and payee data are held separately for each company, and can only be accessed by users who are authorised by the company, and by the authors of the software for support purposes only.

 

·         Each licensee has at least one administrator login. The administrator controls access for all of the licensee’s users, with control over password and access permissions.

 

·         Payee data, which includes sensitive information such as salaries, is fully encrypted and held in files which are unintelligible even to the expert viewer.

 

·         Files are maintained at the ISP (Internet Service Provider) site, with full backup and recovery procedures and control.

 

 

Licensing Features

 

·         Licenses are available for ‘individual’ users, ‘regular’ users, ‘extended’ users and ‘corporate’ users.

 

·         An ‘individual’ license allows the user to maintain a single payee. The user will have one opportunity to submit the payee name and salary details, and then will be able to update the salary package for a full month. If the user makes a genuine mistake with submitting name and salary details, then he/she must contact us to rectify this error before proceeding with the salary package.

 

·         A ‘regular’ license allows up to 30 payees to be maintained. An ‘extended’ license allows up to 100 payees, whilst a ‘corporate’ license places no restrictions on the number of payees. All license types (except for ‘Individual’) allow unlimited numbers of users and clients. (‘Clients’ are grouping entities for employees, usually employer organisations, for which summary reports are available.)

 

·         Licenses may be purchased on a monthly or annual renewable basis. Users are reminded each time they login if their license is due to expire within 30 days.

 

·         All files are maintained for a minimum of three months after expiry of the license, allowing renewal within this time. Also within this time frame, copies of a company’s data (in Excel’s ‘.csv’ format) may be requested for a nominal fee.

 

·         A license holder is entitled to full system support for the life of the license. The developers of the software support it fully with up-to-date tax files and calculations, and monitoring of ATO rulings and changes in practice which affect salary packaging. Any changes to the system will be reported to licensees, either privately via email, or publicly via text in the login screen. Suggestions and feedback are also welcome from all license holders.

 

·         License prices, inclusive of GST, are:

 

License Type

Maximum Payees

One Month

One Year

Individual

1

$55.00

N/A

Regular

30

$110.00

$660.00

Extended

100

$330.00

$1,980.00

Corporate

Unlimited

$440.00

$2,640.00

 

Contact Details

 

For further information on Mistral Salary Packaging or to purchase a license via cheque or direct deposit, contact Management Online Pty Ltd via email to info@SalPack.com.au. To purchase a license immediately via credit card, follow the link in the main page.
 


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