Hard pressed parents face new dilemma over childcareFebruary 2, 2016
Outsourced payrollOctober 25, 2016
Stay ahead of the game and proposed government changes…
If you have a really good team working for you, you will want to keep them working for you!
- When you lose staff, you lose their skills, the positive client relationships they have built up and you lose the team culture that has developed.
- Employees make or break a business. Happy employees make for happy customers!
- We make it easy for you to retain, motivate and engage your employees. At Enjoy we offer a range of employee benefits (the bulk of which are offered through salary sacrifice). These benefits give your employees more disposable income, help them better afford every day items and big ticket purchases plus give them better remuneration at no cost to the business.
- We offer everything from new bikes, new cars and car parking passes through to laptops, mobile phones and cashplans. One of the most important benefits though must be childcare vouchers. By offering your employees the opportunity to pay for their childcare (from birth up to the age of 15) out of their gross salary and not nett, you are saving them up to £933 a year. That is the equivalent of a very impressive pay rise.
- Vouchers can be offered to employees from the moment they join the business as the cost of childcare vouchers is taken off their gross salary each payroll period, so you are never out of pocket. They are very simple to offer but deliver a lot of “bang for your buck”
- So why doesn’t every employer offer their employees this benefit? Some companies still aren’t aware of the benefit, some companies don’t think staff will be interested and others worry that it will cost them money to do so.
- The reality is that childcare vouchers offered through salary sacrifice actually save the business significant amounts of money in reduced employers NI payments and really make a difference to the bank balances of working parents. With the average cost of childcare in the UK topping £850 a month, childcare is often more than the monthly cost of rent or a mortgage. Childcare vouchers can be used to pay for all forms of registered childcare from nursery care, nannies, childminders through to breakfast clubs, after school clubs and holiday clubs for children up to the age of 15.
- So why not sign up today?
- Companies that don’t get on board with the benefit quickly will lose out. Soon they wont be able to help any of their employees that become new parents and they wont make savings in employers NI. This is because the government are proposing to launch a new form of help with childcare costs, (sometime in 2017). This will require all new employees who become parents after the new legislation is launched, to sign into a government portal and make a payment to the government, in order to get a saving of the tax but not national insurance on their childcare costs. Compare this with the current childcare voucher benefit that is very simply and easily run through the employees gross salary and saves them both tax and NI.
- Employers who already have the childcare voucher benefit set up and who have made all their staff aware of the benefit will be ahead of the game as they will be able to help staff return to work.
- Comparing the existing childcare voucher benefit with the proposed new scheme to be called “Tax Free childcare” the differences are:
||Proposed Tax Free childcare
|Dad can claim as soon as mum comes out of the maternity ward!
||This benefit cannot be accessed until both parents are back at work
|Can be claimed by just one parent
||Can only be claimed if both parents are working
|Save £1866 per family on spend of £5832
||Parent can save £2000 if they spend £10,000
|Benefit easy to obtain through salary
||Parent signs into government website every 3 months and pays money into an account
If you run a business and employ staff, we suggest you get set to offer the childcare voucher benefit today so your employees can start saving money.