Are you aware of salary exchange benefits?
Save tax and National Insurance through salary sacrifice
Salary exchange (or salary sacrifice) offers benefits to both an employer and an employee in the form of tax and National Insurance savings.
The concept is simple and easy to implement. Staff agree to receive less money in their wages in exchange for a non-cash benefit. This exchange could take place at the end of each month or annually.
What non-cash benefits form a salary exchange?
Non-cash benefits are numerous and include coupons, increased pension contributions, childcare vouchers, gym membership or health insurance.
Before you offer a salary sacrifice scheme to your staff, seek guidance from a professional financial advisor to understand implications for Statutory Sick Pay, Statutory Maternity Pay and other provisos linked to Government support schemes.
Salary exchange arrangements should include terms and conditions in the event of a staff member resigning, being dismissed or gaining a promotion.
Salary exchange needs to be considered carefully within HR policies as the option may not be suitable for every employee because it might affect their mortgage, credit rating or impact any active loans.
Talk to Willow Financial Solutions and take advantage of a salary exchange whilst it is still available.
Support your staff to plan for their future
Staff reviews offer an ideal opportunity for employees to talk on a 1-2-1 basis with you, their line manager or an independent advisor to give them a better understanding of how to plan for their future with the support of their employer. This will help to alleviate any anxieties and uncertainty around pensions, employment benefits and financial constraints.
Talk to Willow Financial Solutions about incorporating financial advice into staff reviews.
