1. INTRODUCTION #

A novated lease is a three-way agreement between an employer, employee, and a novated lease provider where the employer takes on the obligation for repayments under the lease, and a corresponding deduction is made from the employee’s salary. Although the vehicle is privately owned by the employee it is treated as if it were a company car.

2. ASSIGN NOVATED LEASE TO A WORKER #

2.1 PROCESS STEPS #

Step 1: Go to the Payroll module and under Workers click Employees.

Navigation

Payroll>Workers> Employees.

Step 2: Open the details of your relevant worker from the employee master page by clicking on it.

Step 3: In the “Profile” tab, click “Benefits” under the “Personal Information” fast tab.

Step 4: Click “New” and then select “Novated lease” from the “Eligibility bypassed” drop-down in the “Benefits” field.

Step 5: Click “Maintain versions” on the action pane.

Step 6: Populate the following information:

• Enter the Effective date
• Select the Vendor
• Select the Basis for deduction: it can be a fixed amount or percentage.
• Enter the amount/percentage for deduction
• Turn the toggle button ON for “Deduct from gross”

Then click “Save”.