Salary Sacrifice for those who have kids?

atush

Tell them it will help them get tax credits, and they wont pay as much NICs.

Win win

By them, i mean your fellow employees.

MoneySavingUser

1) As already mentioned, the claim by many employers that it is costing them a lot of money in admin is generally frivolous, most payroll systems just need some boxes ticked to show you are using salary sacrifice and from then on the procedure is essentially the same as normal.

Some forms are needed to initially opt for salary sacrifice but again any decent HR person should be able to locate a standard form for this.

2) The maternity/sick leave point is more valid though.

Salary sacrifice changes the employee's contributions to employer contributions so they may need to keep paying them if an employee is on maternity or sick leave.

But the law is unclear on this point: https://www.mattioliwoods.com/latest-news/dont-be-left-holding-the-baby-employer-responsibility-during-an-employees-maternity-leave

That site says the employer must pay the "contractual" amount - but what does this mean? If the employee put in more than the minimum to get the employee match then is that whole amount contractual?

There have also been some cases about childcare vouchers which seem to suggest the employer can stop the sacrifice during certain periods.

However, ‘normal’ under a sacrifice arrangement may be the total pension contribution, i.e. if an employer contribution is 5% and the employee’s 3% into a DC scheme. The employee makes their contribution by salary sacrifice, making the employer’s normal contribution 8%. As a salary sacrifice arrangement is a contractual change, the employer is required to continue to contribute 8% as if the employee were in receipt of full pay.

michaels

Employers who don't pass on most of their ni saving are just being greedy. Mine pass on 2/3rds which I reckon is mean, they make a few thousand extra profit a year just because I decide to take more of my pay as pension.

Thrugelmir

michaels wrote: »

Employers who don't pass on most of their ni saving are just being greedy.

Employers have no obligation to even offer salary sacrifice schemes. Perhaps best to be thankfull that yours does.

michaels

As an employer if one of your staff turned up and said they would do the same work for effectively less money thus boosting their profits why on earth would they say no?

Surely then if the employer makes a grand this will easily cover admin costs and give profit, why should they he greedy and want more?

JustAnotherSaver

Why?

Because quite simply there are some people who are that way. They always want more than more. I feel i work for such a company and so do many of my co-workers. I wont really go into detail but throughout the company the staff are amazed at the greed there.


If there is an issue regards sick leave then i can see it being totally a non-starter unfortunately. At my place at least. My wife may have a chance of putting it through at her place but not me.

Whether correct or not i was told if you're on sick leave then your employer can claim back the SSP. My employer says they can't & they have to pay SSP direct.
It's all about the individuals and their mindsets. My employer gets irate about having to pay any sick leave. They don't seem to accept that people can get sick. People can have physical injuries preventing them from doing their physically demanding job. I can understand why as there's been plenty of people who've taken the piddle, but they just assume everyone is like this regardless of decent attendance record.

My wife's employer on the other hand will actually pay some of their staff out if they're on the sick for a few days at the discretion of the boss. My wife for example has had about 3 days off sick in 6 years there so she gets paid when she's on sick. Another employee there for example goes home when they have a runny nose so they don't get paid when on the sick (nothing beyond SSP).