Salary Sacrifice - how much admin is there really?
Many businesses worry about implementing a salary sacrifice scheme due to the burden on their payroll team- but what if we took this away?
With our 100% Electric Salary Sacrifice Scheme, we make it as simple as possible. HMRC have already approved the scheme which simplifies the process on both ends of reporting.
What do Payroll need to do?
- Ensure that the driver deductions from salaries are correct at the end of each month
- Pay invoices relating to driver deductions
What are the drawbacks?
- If an employee leaves with no notice that month’s payment will still have to be made by the employer
- If you do not have leaver protection built into the scheme then you will be liable for the rest of the payments if an employee leaves. With our scheme we include full leaver protection so that if an employee leaves the car can be returned at no cost to the company.
- There’s a 24 month minimum length for any Salary Sacrifice contract.
- All employees who are paid monthly will be eligible just as long as the payments do not drop their salary below minimum wage.
- If an employee in the scheme goes on maternity, paternity or adoption leave their payments must still be made by the employer, however with our scheme we cover these invoices up to 12 months once an employee drops to statutory pay.
- P11d tax reporting is of course still necessary