Salary Sacrifice can be a real treat for your employees, a great way of widening your benefits offering without incurring any cost but get it wrong and a 'treat' can all too quickly turn into a 'trick' for you and your employees potentially with a scary ending for all concerned. So what should you consider when implementing salary sacrifice benefits?
Treat
Salary sacrifice gives employees a 32% or 42% saving on the things they would normally buy, freeing up take home pay giving more disposable income, think of all the pumpkins that would buy!
Trick
Be aware of P11d on benefits, for gym membership this may erode the benefit for a 40% tax payer, for cars whereas low Co2 cars may yield huge savings these dry up quicker than a blood bank at a vampire convention once Co2 rises above 140.
Treat
Salary sacrifice schemes can be cost free for employers, attracting the best local talent whether that be a pathologist or a poltergeist!
Trick
The schemes are generally cost free but beware the admin if you choose the wrong partner, you could be working all night and leaving work tired at dawn could dry up your savings quicker than a vampires skin in the sun.
Treat
Salary sacrifice schemes are long term commitments, while employees don't need to 'sell their soul' for eternity they do sign up for a fixed term and this is demonstrated to improve retention for more information click here.
Trick
You are offering a long term benefit, if the employee is unable to 'sacrifice' due to minimum wage, or perhaps a hoard of angry villagers trying to recover their neighbour then you may be expected to fund the benefit.
When it comes to Salary Sacrifice Cars we believe that schemes should treat your employees, to savings of up to 45% on retail costs, but without causing you sleepless nights, we leave that to scary films. Our schemes are cost and risk free typically.
