Some organisations would rather keep salary packaging in house. They want the control, the direct relationship with their people, and the visibility that comes from running the program themselves. The problem has always been the compliance risk and the manual effort. Purpose built salary packaging software removes both, so you can keep control without carrying the burden. Here is how it works.
The case for keeping packaging in house
Outsourcing salary packaging is the right answer for many organisations, but not all. If you are a large employer in government, health, education or the not for profit sector, you may have good reasons to keep the program internal. You keep the employee relationship, you keep your data close, and you retain full control over how the program runs. What you do not want is to take on the compliance exposure and the mountain of manual reconciliation that used to come with doing it yourself.
That is the gap salary packaging software is built to close. It gives you the control of running packaging in house with the compliance confidence of a specialist provider, because the provider grade tax expertise is built into the platform itself.
Payroll integration and ATO compliance, built in
The two things that make or break an in house program are payroll integration and compliance, and both are at the core of the software. It integrates with virtually any current payroll system and processes right up to your payroll cut off, with no manual reconciliation at the end. The FBT exempt caps and benefit rules are configured for you, so calculations are correct every time and your team is not interpreting tax rules by hand.
Every action is backed by compliance reporting and full audit trails, running on private cloud infrastructure with annual Australian security audits. In other words, the reliability and rigour you would expect from an outsourced provider, kept inside your own four walls.
What the platform gives you
- Payroll integration. Works with virtually any current payroll system and processes to payroll cut off with no manual reconciliation.
- ATO compliance. FBT exempt caps and benefit configuration built in, so calculations stay correct and compliant.
- Dual user access. Separate, purpose built interfaces for your administrators and for your employees.
- Reporting and security. Compliance reporting and full audit trails, on private cloud infrastructure audited annually in Australia.
- Two benefits, one system. One platform covers both salary packaging and novated leasing.
Live in weeks, not quarters
A common fear with any new system is a long, painful rollout. This software is designed to be live in weeks, not quarters, so you are not committing to a project that drags on for a year. The industry has largely solved the underlying product. Where organisations still get let down is the experience and the transparency, and that is exactly what a modern, purpose built platform is designed to fix.
Who keeping it in house suits best
In house software is not for everyone, and it is worth being honest about who it fits. It tends to suit larger employers in government, health, education and the not for profit sector: organisations with a capable payroll function, a preference for keeping the employee relationship and the data close, and enough scale that running the program internally is worth the ownership. If that sounds like you, software gives you control without the manual risk.
Smaller organisations, or those without the internal capacity to manage a program day to day, are usually better served by outsourcing. The good news is that you do not have to work this out in isolation, and you are not locked in forever. Many organisations start with one model and move to the other as they grow.
Security and data you can stand behind
When you keep packaging in house, your team sits closer to sensitive employee and payroll data, so the platform is built to protect it. It runs on private cloud infrastructure with annual Australian security audits, backed by compliance reporting and full audit trails. That means when a board member, auditor or regulator asks how the program is controlled, you have a clear, documented answer rather than a spreadsheet and a hope.
What implementation actually looks like
Live in weeks, not quarters is a promise about the rollout, not a slogan. Because the platform is purpose built and integrates with virtually any current payroll system, implementation is measured in weeks. The provider configures the caps and benefit rules, connects to your payroll, and helps your administrators and employees get comfortable with their separate interfaces. You are not signing up for a year long project that stalls halfway through.
Common questions from payroll and HR teams
Will it work with our payroll system?
In almost all cases, yes. The platform is designed to integrate with virtually any current payroll system and to process right up to your payroll cut off, without manual reconciliation at the end.
Who keeps us compliant if we run it ourselves?
The compliance expertise is built into the software. The FBT exempt caps and benefit rules are configured for you, and every action is backed by reporting and audit trails, so your team is not left interpreting tax rules by hand.
Can it handle novated leasing too?
Yes. One platform covers both salary packaging and novated leasing, so you are not running two systems for two benefits.
Outsourcing benefits, in house control
The simplest way to describe salary packaging software is outsourcing benefits with in house control. You get the tax expertise, the compliance and the reliability that come from a specialist, without handing over the program or the employee relationship. For a large employer that wants both control and confidence, that combination is hard to beat.
Eziway builds this software in Australia, drawing on years of running salary packaging as a specialist provider. If you would like to see how keeping your program in house could work, book a walkthrough and we will show you the platform against your own payroll and requirements.
Disclaimer
- This article is general information only and does not take your personal or organisational circumstances into account. It is not financial, taxation or legal advice.
- Salary packaging and novated lease rules, caps and Fringe Benefits Tax treatment depend on your situation and current legislation, and can change.
- Please speak with Eziway and seek independent advice before making a decision.