Understanding your RemServ fully-maintained novated lease balance
Every time you get paid RemServ requests a contribution from your payroll and this amount is deposited into your RemServ novated lease account. Think of it as basically like a bank account for your novated lease.
RemServ then makes payments from this account, we reimburse you from this account when you send us claims and we also pay items like registration and lease payments from this account.
RemServ request your funds each pay
When RemServ requests these funds your payroll removes this amount from your GROSS income, you are then taxed on the remaining (lower) GROSS amount and the removed pre-tax portion is sent to RemServ, along with the post-tax component of your budgeted contribution.
This contribution amount is a combination of your novated lease items, things like rego, fuel, maintenance, lease payment etc. Once received by RemServ the contribution amount is added to your RemServ novated lease balance — like a bank account for your lease.
So there are no separate accounts for your individual expenses, they all have individual budgets, but they are all paid out of the one account balance.
This is a key point
Understanding the above process is important because all your running costs are paid out of this same balance, so overspending or unforeseen claims do need to be budgeted for.
For example, if you are consistently overspending on fuel, this will reduce the total remaining amount available for your other budgeted items like rego, insurance and maintenance. This is because they all come from the one account balance.
We constantly monitor your novated lease budget and the contribution amounts to your novated lease account to make sure we arrange for its top-up where necessary — or reduce if required.
RemServ makes your payments
The reason behind all this of course is to ensure that your running costs are budgeted for, so when the time comes to pay for your registration, insurance, maintenance etc. it’s a simple process to get these items paid for.
If you like you can pay for these items yourself and then claim the pre-tax amount from RemServ, this is called a ‘reimbursement’ payment. As you’ve already paid for the item, the reimbursement you then receive from us is yours to use as normal.
By far our most popular option is ‘direct’ payments, the RemServ app and RemServ Online now allow you to upload unpaid invoices and bills, so we can pay these items on your behalf directly from your novated lease account, easy!
The fuel card has a slightly different process, each month we receive a total of what has been spent by you on fuel, we then pay this amount in one go from your novated lease account balance, there is nothing further you need to do.
Getting things balanced
We hope this has provided some clarity on how we manage your novated lease balance! If you have more questions about novated leasing get in touch for a chat, we’re happy to help.
Disclaimer: This website contains general information and doesn't take your personal circumstances into account. Seek professional independent advice before making a decision.