What Do You Need To Do To Your Payroll In The Case Of Salary Sacrifices?

What Do You Need To Do To Your Payroll In The Case Of Salary Sacrifices?

 03 Aug 2017

There are cases wherein as an employer, you can give an option to your employees to choose between their salary and benefits amounting to the same value. You may also provide a flexible salary package to your employees where there is no fixed salary and there are various benefits that can be availed on the sacrifice of salary, such as gym memberships of mobile phones.

There are new rules that have come into the picture as far as salary sacrifice is concerned. You need to adhere to these rules if these cases apply to your office. However, you need not do anything if your employees are sacrificing salary for matters like pensions, pension advice, children vouchers, workplace nurseries, directly employer contracted childcare, cycle to work or cars with emissions under 75g CO2/km.

In terms of your payroll software, the software will already be capable of handling the salary sacrifice payments under the “Payments and Deductions” tab. All you need to do it just re-calculate the figures that your employees are paying and re-enter it into the software. Further, the software will take care of all the calculations run by each payroll. However, it is recommended that you get a head-start on the payroll year-end as soon as possible. There are companies which give you a Payroll year-end and HR pack. This pack has been designed to make sure that you have a smooth year-end and that you are able to comply with the latest payroll and HR legislation. There are also on-demand videos that will train you and show you how to complete your year-end process in your software and avoid HMRC fines that are likely to be charged on you. They also cover the latest legislation changes, including the new Apprenticeship Levy, Payrolling Benefits-In-Kind and the end of the transitional period. These packs also include tips from various HR legislation experts, discount vouchers and exclusive access to various on-demand training seminars online.

 Hence, these are the things you should keep in mind in case you are giving your employees an option of sacrificing their salaries and getting equivalent benefits in return. You may face a little difficulty in initially managing the payroll due to the new changes that have been enforced, but if you take the help of an effective payroll service to get your work done, you can manage it in the best possible way.