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Home » Next generation
Salary Sacrifice
Salary sacrifice is the latest topic to be sweeping through the industry, so here is an easy to understand overview of what it is and how it works with a cashless system. Salary Sacrifice – What is it? Salary sacrifice is when an employee takes a formal reduction to their cash salary in exchange for a non cash benefit. The employee’s terms and conditions must be amended if participating in such a scheme. This is an agreement between the employee and the employer; however, the scheme can result in a Tax or National Insurance saving, therefore all schemes must be carefully considered and approved by your local tax compliance officer. So for more information on what considerations should be taken into account and advice on how to set up a scheme go to www.hmrc.gov.uk. So can it work with UMIS? Yes – UMIS will interface with your payroll system. Each month the payroll system will create a CSV file which is automatically collected by UMIS. Once the data has been transferred to UMIS all relevant cards are then loaded with the set amount according to the rules of your scheme. This is done immediately and does not require the card to be inserted into a loading station to download funds. The funds are stored in a separate purse which can not be added to by the employee or refunded. An additional purse will be accessible on the card should an employee wish to top up their card each month with extra funds. At the Point of Sale and vending machines When an employee goes to the point of sale or vending machine, the system will automatically look at the salary sacrifice purse first to take payment. If there is not sufficient funds to complete the transaction it will then look to the second purse. Restrictions Checking balance Balances of both purses can be checked at both the PoS and at any Account Management Station.
For further information about Salary Sacrifice and Cashless Payment Systems please contact us on 0800 393307 or email info@uniware.co.uk.
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