The combination of COVID-19 and the oil price is financially squeezing companies all over the north east Scotland and businesses need to find ways of saving money – our question to you is a simple one;
‘Is your company paying too much National Insurance?’
As costs and budgets are under scrutiny for most businesses just now, why would you not consider reducing your National Insurance bill?
Salary Exchange for pensions is a simple, approved mechanism to save employers NIC’s. It’s whereby an employee agrees to exchange part of their salary in return for a pension contribution from their employer – not only allowing workers additional tax and national insurance contribution savings, but also benefits the company itself through lowering the Employers NIC bill.
According to recent research of 568 Human Resources practitioners by the Chartered Institute of Personnel and Development (CIPD), only 41% of SMEs offer Salary Exchange, compared with 61% of large and 85% of very large organisations. This begs the question why so many employers are not offering Salary Exchange?
In reality, the answer is that they are not getting the best advice. Some employers believe it is a complex and challenging implementation, but with pro-active advice, our expertise and breadth of knowledge in this area, we simplify the process making it straightforward and very beneficial.
The maths is simple, and the benefits can be significant. For example, an average salary of, say £35,000 and the employee pension contribution is 5%, the employer savings on National Insurance for one individual would be circa £240 per annum. When you multiply that by the number by the employees in the pension, the saving becomes significant! If you have 100 employees that's almost £24,000 reduction in your National Insurance bill not to mention the savings the employees will make.
We can help you implement this is cost saving strategy can be swiftly and expertly, guiding you through the process. Acumen Employee Benefits are specialist in this field and whilst there are nominal costs involved, in most cases these are more than outweighed by the level of National Insurance savings in the first number of months alone.
If you want to find out more please contact us for an initial, no obligation discussion.