Novated EV Car lease - Flare??

Hi Team

I’m new to novated leases and would appreciate some guidance on the correct payroll setup in MYOB AccountRight.

We have recently signed up with a novated lease provider on EV vehicle under $75K, no FBT. My understanding is that the employee will make the salary sacrifice deduction through payroll, and the novated lease provider will then invoice the company for payment or reimbursement.

The novated lease provider has given us a Payroll Novated Lease Deduction Advice showing the amount to deduct from the employee’s pay.

Could you please confirm the following:

1. Do we need to use Flare for this setup? If so, what is it and is it required if we are not using Flare for the lease arrangement?
2. For payroll processing, are the following the only steps required to record the novated lease deduction correctly?

Step 1: Create a liability account

• Account name: Novated Lease payable
• Account type: Liability
• GST code: N-T

Step 2: Create the deduction pay item
Go to: Payroll → Pay Items → Deductions → Create deduction pay item

Under Create deduction pay item:

Details

• Name: Salary Sacrifice - Novated Lease
• Name for pay slip: Salary Sacrifice - Novated Lease
• Linked payable category: Novated Lease payable
• ATO reporting category: Salary sacrifice - other employee benefits

Deduction information

• Calculation basis: Equals dollars per pay period
• Dollars: $XXX
• Per: Pay period
• Limit: No limit

Employees using this pay item

• Employee: ABCD

Exemptions

• Add: PAYG Withholding

Would you please confirm whether this setup is correct, or advise if any other steps are required?

Thank you.