All new businesses want to ensure that they are getting the best staff, but unfortunately the reality is that most employers are no longer able to offer boastful salaries, company cars and an endless list of other benefits in order to attract talent.
However, there is one employee benefit which is sometimes overlooked. One that not only saves the employer money every time a member of staff uses it, but that is also the equivalent to a 3.7% pay rise for someone on a salary of 25,000.
Childcare Vouchers are a Government initiative implemented through an employer’s payroll. They are primarily an employee benefit which save both parents and employers thousands of pounds each year. It is a salary sacrifice scheme, which means that parents can swap part of their salary to contribute towards their childcare costs. Similar to pension schemes, this amount is taken before tax and National Insurance Contributions (NICs) are deducted. Therefore each parent could save over 900 per year.
The employer also saves money because the amount each parent swaps is exempt from employers’ National Insurance Contributions. As well as the financial benefits, Childcare Vouchers can also help with recruitment, retaining staff, increasing staff morale and generally promoting a family-friendly culture within the workplace. Remember, the more employees you have using the scheme, the more savings you will make on your employers National Insurance Contributions.
Childcare Vouchers are just one of a number of family-friendly initiatives that employers can implement to help their employees balance their work and family lives. Other examples are flexible working, term-time working, enhanced maternity and paternity pay or leave arrangements.
Childcare Vouchers can be used by parents to pay for any type of registered childcare for children up the age of 15, or 16 if registered disabled. This includes registered childminders, day nurseries, holiday schemes, and breakfast and after school clubs. They work in a similar way to online banking, so parents can access their own accounts to transfer money to their chosen childcare provider(s). Parents can use the takeaway voucher codes to pay for more than one type of childcare and can choose to set up standing orders to pay their childcare provider(s).
The amount of money each parent can sacrifice will depend on which tax bracket they fall into. Some parents may also be entitled to claim part of their childcare costs through the childcare element of Working Tax Credit.
Employers For Childcare Voucher scheme is very straightforward and extremely easy to implement and your company will be provided with free, customised marketing materials.