There are many different employee benefit solutions available today, including health insurance, car leasing, and much more. For working parents, the option of childcare vouchers is something that really appeals. We will reveal more about salary sacrifice and childcare vouchers in this post.
Firstly, we need to explain what salary sacrifice is. As the name suggests, this is when an employee agrees to give up part of the cash pay they receive during their employment in return for some form of non-cash benefit. In this case, the benefit would be childcare vouchers. In most cases, the benefit has substantial financial and personal value, which is why employees decide to give up their salary for it. As you well know, childcare is expensive here in the UK, and most working parents end up spending a large chunk of their wage on this. This is why childcare employee benefits are extremely advantageous, especially for single parents whom really struggle in this regard. Such employee benefit schemes do not only benefit employees, but they benefit employers too. You will be able to set your business apart from the competition, attracting the best talent and retaining high calibre employees. You will also boost morale and productivity levels, and there are tax benefits as well. It is a good idea to work with a specialist in employee benefits when implementing this type of scheme, as there are a number of different options to choose from.
There are some important points to be aware of when it comes to childcare employee benefit solutions. Firstly, for employees to determine whether they would benefit from this solution, it’s quite simple. They need to work out whether the amount of their qualifying childcare expenses are more than the current childcare limits. If so, they will benefit from this scheme. Of course, if you have a young group of staff, and there are not many parents, this scheme probably isn’t the right option. If you do have a lot of working parents as part of your team, talk to them first. Find out whether this scheme would be something they are interested in – don’t simply assume. A lot of workers may have family members who look after their kids while at home, and so it may be better to look at a different type of salary sacrifice scheme to implement. It is also worth pointing out that UK families that receive these childcare vouchers cannot go onto claim the childcare element of the working tax credit on the same costs.
As you can see, there are many benefits associated with these employee benefit solutions. As an employer, you can boost morale, productivity, and retention levels by offering such a perk, plus there are tax benefits too. You will be shocked by how much of a benefit this can have on your business.