Launch Pension Salary/ Bonus Exchange
If you do not already enable your employees to make contributions to your Workplace Group Pension Plan from gross salary, we can assist you to design, communicate and implement.
This is the most tax efficient way of contributing that will save both employer and employee National Insurance every year. There are also additional advantages for the higher earners.
Advantages of Salary Exchange
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Employer saves National Insurance on employee's pension contributions
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Employees receive full tax relief at source, including higher and additional tax-payers
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Employees save National Insurance, which may result in higher take home pay
Considerations:
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​There are different options to implement a salary exchange facility
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The launch needs to fit with the payroll cycle
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Effective launch communications ensure employee understanding
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Controls are needed to ensure employee earnings to not breach national living wage levels
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Reduced salary can impact on other benefits based on multiple of salary benefit basis unless altered
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