Does Saral PayPack accommodate Flexi Pay concept?
Yes. Saral PayPack is very much accommodative to the concept of Flexi pay or CTC. According to this concept, the gross salary is derived from the CTC, which includes the reimbursement amounts. This concept helps in reducing the amount of tax to be paid by the employee and usually called as CTC (Cost to Company). This is an employer’s perspective as to derive at the total amount needed to hire an employee per year. Any salary head that is paid to employee is taxable. If the employer pays the LTA, Medical Reimbursements, Telephone Reimbursements, Transport charges under salary heads, that would attract the tax, and when the same is shown under Reimbursement heads, that reduces the amount of tax to be paid by the employee, since Fringe Benefit Tax is less when compared to Income tax.
