Novated Lease Payment - Set Up Account/Line Item

Hi, firstly let me preface this by saying I'm more of a payroll person v. an accountants person.

You are correct, novated lease salary sacrifices are different to superannuation salary sacrifices.

• Salary Sacrifice Other (O): When the employee agrees to have part of their Pre-Tax Salary paid towards other non-cash benefits (i.e. a Novated Lease)
• Salary Sacrifice Superannuation (S): When the employee agrees to have part of their Pre-Tax Salary paid into a Superfund of their choice

Is it only pre-tax, no post-tax? Any post-tax deductions for the lease wouldn't need an STP2 code.

Only union fees (F), child support payments (D or G) and work place giving (W) are reportable deductions for STP2.

Regarding the accounts side of things: yes, I think it should be a clearing accounts. You deduct from the employee and would pay over the full amount to the leasing company on a monthly basis (or when they issue you an invoice).