What is a Salary Sacrifice?
Salary sacrifice is a form of compensation arrangement where an employee agrees to forgo a portion of their salary in exchange for receiving a non-cash benefit. These benefits can include things like childcare.
What are the advantages?
One of the main advantages of salary sacrifice is that it can help employees to save on taxes. Because the sacrificed salary is not included in the employee’s taxable income, they will pay less income tax on their remaining salary. Additionally, the cost of the non-cash benefit is also typically taxed at a lower rate than the salary would have been, providing an additional tax saving.
Another advantage of salary sacrifice is that it can help employees to afford benefits that they may not have been able to otherwise. For example, an employee may not be able to afford private health insurance on their own, but by sacrificing a portion of their salary, they can access this benefit.
Tops Day Nurseries offers Salary Sacrifice to companies and organisations, if you are interested then use the contact form below to let us know and we will get back to you promptly.
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