Salary sacrifice schemes 'could benefit employer and employees'
27/01/2012 16:12
Recruitment consultants handling upcoming employment opportunities for large businesses could recommend that the employers could gain from tax benefits when offering salary sacrifice schemes.This is according to Sheila Attwood, pay and benefits editor at human resources information site XpertHR.co.uk, who suggested that bosses can get national insurance savings for both employer and employee if salary sacrifice schemes are offered.
"People can save money on both sides and then decide how they are going to benefit employees - [they can decide] whether they are going to pass on the savings. Either way, there are savings still there for employers," she explained.
Ms Attwood also mentioned that this is the main saving initiative that many employers should be looking at.
Voluntary benefit schemes have remained relatively stable where demand for them is concerned over the past few years, according to the expert, who suggested that 20 per cent of companies offer a voluntary benefit scheme and this figure has not changed much over the past four years.
Many employees will now opt to find their own discount codes on websites that offer ten or 20 per cent discount initiatives.
HM Revenue and Customs explained that a salary sacrifice happens when an employee agrees to give up part of their pay in return for some form of non-cash benefit.
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