Payroll and financial information
Questions answered on this page:
Is there any effect on pension scheme contributions?
Is there any effect on Statutory Maternity Pay / Statutory Paternity Pay?
Is there any effect on Working Tax Credit or Child Tax Credit?
Is there any effect on overtime payments?
What should the payslip show?
Is there any effect on pension scheme contributions?
This depends on your pension scheme. Most pension providers are happy to accept vouchers as notional pay. Sodexho Pass recommends that you check with your pension provider prior to putting a scheme in place.
Is there any effect on Statutory Maternity Pay / Statutory Paternity Pay?
Statutory Maternity Pay (SMP) is calculated on salary on which NI is payable so SMP may be reduced if taking childcare vouchers. For this reason we advise employees to consider coming off the scheme 23 weeks before their baby is due when SMP is calculated. Statutory Paternity Pay is not affected.
Is there any effect on Working Tax Credit or Child Tax Credit?
There may be an effect on the childcare tax credit element of the Working Tax Credit and/or Child Tax Credit. Sodexho Pass cannot comment on individual circumstances and it is the individual’s decision as to whether they wish to take childcare vouchers. It is advisable for employees to contact the Tax Credits helpline on 0845 300 3900 prior to applying for childcare vouchers to establish individual circumstances. Alternatively, there is information on HM Revenue & Customs Website.
Is there any effect on overtime payments?
Most work benefits are calculated on gross salary, so overtime/other benefits should not be affected.
What should the payslip show?
The vouchers do not need to appear on the payslip at all. Most employees do prefer however to see their total salary package. If the vouchers are shown, the original (pre sacrifice) figure should be referred to with the voucher amount shown as a ‘negative allowance’.