If you’re an employer, offering employee benefits is an excellent way to motivate your workforce. Whether you are looking to offer pension contributions, life cover or ‘flexible benefits’ like discounts on shopping and eating out, the increase in staff morale will be a huge benefit to your business.
If you’re an employee, you may have a pension or protection through your employment and it can be challenging establishing how they work and what your options are.
Call us today to discuss your employee benefits provision or read more detail about the options below.
We build solid relationships with our clients. Whether you’re an employee or an employer, our advisers will take the time to get to know you and your objectives to help you establish the most appropriate employee benefits package.
The key to our exceptional service is our people. Our specialists have the knowledge and expertise to put together a comprehensive solution, perfectly tailored to suit your needs.
Encourage your employees to plan for the future, supporting them to proactively review and improve their finances and overall wellbeing.
Give your employees access to a range of benefits and discounts that support their overall wellbeing, whether it’s physical, emotional or financial.
By investing in your employees, you can mitigate risks, reduce costs and help to ensure a healthier, happier and more productive workforce.
Designing a holistic employee benefits and rewards strategy that works for both your company and your employees is a priority for any modern business.
We can help you to deliver a wellness strategy for your business that finds the right balance between benefits and budget, allowing you to attract and retain your best staff.
Below are some FAQ’s relating to employee benefits
Employee benefits are non-financial compensation given to employees as part of their employment contract. Employee benefits may be required by law (depending on things like the risk associated with the job, or the industry the job is in), or provided voluntarily by the employer
From an employee’s point of view, a good benefits packages increases the value they receive from their working life and contributes to their own health and even that of their family.
From an employer’s point of view, benefits help staff remain happy and committed to their role, reducing the chance of them leaving to work elsewhere.
The main employee benefits we offer are:
Workplace pensions are subject to minimum contribution levels based on the employee’s salary. The current levels are 3% from the employer and 5% from the employee.
There is another charge for workplace pensions: the annual management charge levied against all members’ pension pots in the scheme. The pension provider charges this fee to the employer for managing the money. This charge is currently capped at 0.75% per annum, but lower charges are possible depending on the scheme.
The cost of other employee benefits depends on many different factors. These include:
Each scheme will be priced according to these, and other, criteria. A broker can help navigate the complexities of arranging an employee benefits scheme and make sure you get the best package for your valued staff.
How employee benefits are taxed depends on the type of scheme purchased. Below is a table summarising how different schemes are taxed:
|Employee Benefit Scheme||Tax for the employer||Tax for the employee|
|Workplace Pension||Employer contributions can usually be treated as a business expense||Employee pension contributions are subject to an uplift of 20% due to government tax relief. Any fund growth within the pension is then tax free. When the pension is released at retirement, 25% of the fund value is tax free and the remaining 75% taxable at their marginal rate.|
|Death in Service||This can usually be treated as a business expense||These schemes aren’t normally treated as a ‘Benefit in Kind’ so proceeds from claims are usually tax free|
|Group Income Protection||This can usually be treated as a business expense||These schemes aren’t normally treated as a ‘Benefit in Kind’ so proceeds from claims are usually tax free|
|Group Critical Illness||This can usually be treated as a business expense||These schemes are treated as a ‘Benefit in Kind’ so employees who are members of the scheme will have to pay tax on the premiums at their marginal rate. The proceeds are usually tax free.|
|Private Medical Insurance||This can usually be treated as a business expense||These schemes are treated as a ‘Benefit in Kind’ so employees who are members of the scheme will have to pay tax on the premiums at their marginal rate. The proceeds are usually tax free.|
|Health Cash Plans||This can usually be treated as a business expense||These schemes are treated as a benefit in kind to employees. However, due to relatively low premiums, there are some exceptions where members are not asked to pay tax on the premiums. The proceeds are usually tax free.|
If you rent out a room or part of your home to a tenant or lodger, while also living there yourself, you’re classed as a ‘live-in’ or ‘resident’ landlord. Taking on a lodger, or tenant, can earn you some extra money, but it pays to be aware of the procedures you need to follow, and the rights and responsibilities of both parties.