When Employees Pay Less than the NIC Certification

Arrangements for pension-related salary sacrifice have become common over the years. They benefit employers and employees alike, though certain measures should be taken into account when setting them up.

Bonus or salary sacrifice arrangements changed in April 2017; however, arrangements related to pensions and related advice, cycle-to-work, and employer-supported childcare were exempt from the changes.

This course covers salary sacrifice arrangements associated with pension contributions. We define the term “salary sacrifice” and illustrate how it works, and outline various tax-exempt benefits that can also be used with the arrangement.

We then explain how salary sacrifice can benefit both employers and employees, and how the arrangement can affect other employee benefits, along with the role of employee agreement or consent, the role of the employer and employee in implementing salary sacrifice, and the role of HMRC and pension scheme trustees.

Finally, we cover defined contribution and personal pension arrangements and how they can be used alongside salary sacrifice.

You will learn:

• The meaning of salary sacrifice
• The benefits of salary sacrifice to employers
• The benefits of salary sacrifice to employees
• How salary sacrifice affects other employee benefits
• The role of employers and employees in the agreement
• The support that HMRC and pension scheme trustees provide
• How defined contribution and personal pension schemes are used with the arrangement

Course content

1 module · 0.75 hours of learning

• When Employees Pay Less Than the NIC (includes quiz)

This course is part of our accounting and finance courses, within our wider CPD course library.