FAQ's for Employers
How much can I give to an employee as a childcare voucher?
What do payroll need to know for the pay process?
How often do we buy these vouchers?
So the more qualifying employee’s, the greater the financial reward for the employer?
Can a salary sacrifice ‘Childcare Voucher Scheme’ affect Pension Schemes or retirement benefits?
What about the Minimum Wage Rule?
Can a parent change their required voucher amount?
Do we need to inform HM Revenue and Customs?
Can an employee receive vouchers whilst on Maternity/Sick Pay?
What paperwork is required and do we have to sign anything?
Can this effect the parents entitlement to the Childcare Element to 'Working Tax credits'
How much can I give to an employee as a childcare voucher?
As much as you like but the limits set by the Government for tax and N.I. exemptions are £243 per month if you pay employees monthly or £55 per week for employees paid Weekly/2-Weekly or 4-Weekly at the moment. Hopefully this may increase again with the next budget.
What do payroll need to know for the pay process?
Childcare Vouchers are classed as a pretax deduction. So you need to instruct your paroll software (Sage for example)/ Accountant/ Payroll Bureau to treat it as so and that’s all there is to it. Use Childcare Voucher as the payroll reference and it will shows correctly on pay slips. Unless the voucher amount needs to change for any reason, that’s all there is to it.
What is Salary Sacrifice?
Salary sacrifice is just a scary way of saying that the voucher value is part of your employee’s Monthly or weekly pay as apposed to being on top of it.
How often do we buy these vouchers?
The simple 2 stage process (An invoice payment then a payroll instruction) happens each pay period.
If you pay employees weekly but would prefer an invoice every 4 weeks instead we can send your invoice every 4 weeks for 4 weeks worth of vouchers. Call us on 01254 695 178 and we will tailor the scheme to suit, it's very simple...
Bear in mind that the funds used to settle our invoice are those you would use to pay the staff member anyway.
Who pays Vouchers 4 Kids?
A portion of Employers National Insurance Exemptions saved are used to pay for this service.
Every Childcare Voucher given to an employee saves you 12.8% of it's value because you dont pay Employers N.I. on a Childcare Voucher.
Our service charge is intentionally less that 12.8% of the Childcare Voucher value to ensure that you save money every time you allow an employee to receive a childcare voucher as part of their pay.
WE DO NOT HAVE ANY OTHER CHARGES OR A MINIMUM NUMBER OF EMPLOYEES like some other companies.
The amount you save increases with the number of employees accessing the scheme. Call us on 01254 695 178 for actual figures. In
