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Human Resources

Employee Benefits - BenefitsPlus

These Frequently Asked Questions explain how BenefitsPlus Childcare Vouchers works and will hopefully answer any questions you may have. 

Please note: BenefitsPlus Childcare is administered by the company Sodexo. For further information about the scheme please contact them:

T: 0800 328 7411
E: customercare.motivation.uk@sodexo.com
W: www.SayCareVouchers.co.uk (external link)

To set up a voucher arrangement you can request an invitation to join through the Payroll Section on extension 54193 or by email to payroll@salford.ac.uk.

 

1) What is BenefitsPlus Childcare Vouchers?

BenefitsPlus Childcare Vouchers is a cost effective way of paying for your childcare by taking advantage of tax and National Insurance efficiencies.

To take advantage of this scheme you need to agree a set reduction in your salary equivalent to the cost of the childcare vouchers. Following the introduction of new scheme rules in April 2011, HM Revenue and Customs restricted the receipt of vouchers as follows:

  • Basic Rate taxpayer can sacrifice £243 per month
  • Higher Rate taxpayer can sacrifice £124 per month
  • Additional Rate taxpayer can sacrifice £97 per month

By joining BenefitsPlus Childcare Vouchers your basic salary will be reduced by the amount of the childcare vouchers and will be shown on your payslip as 'BenefitsPlus Childcare'. As your basic salary is reduced, you will pay less Income Tax and National Insurance Contributions (NIC), thereby increasing the total value of your remuneration package (net pay plus voucher).

This concept is known as 'salary sacrifice' as you are giving up an amount of salary in exchange for a benefit. This will not affect other pay and benefits provided by the University as we will use your Notional Salary to calculate these. Notional Salary is your original salary amount before the salary sacrifice reduction.

2) How much can I save if I join BenefitsPlus Childcare Vouchers?

Details of savings and more information can be found in the link here.

3) Are all University employees eligible to join BenefitsPlus Childcare Vouchers?

All University employees are eligible to join BenefitsPlus Childcare Vouchers if they have a child up to the age of 16.

4) What can I spend Childcare Vouchers on?

Childcare vouchers can be spent on a variety of childcare options. Examples include:

  • Day nurseries
  • Pre-schools/playgroups
  • Childminders
  • Holiday play schemes
  • Breakfast and after-school clubs
  • Activity clubs
  • Nannies and au-pairs

All child carers must be registered before they can accept the vouchers. Please check with your childcare provider to find out if they accept childcare vouchers or speak to Sodexo for more detailed information.

5) How do I join?

Please contact the Payroll Section on extension 54193 or by email to payroll@salford.ac.uk to request an invitation to join. Please note that you can join at any time of the year.

6) Who can I speak to about BenefitsPlus Childcare Vouchers at the University?

It is doubtful that you will need to contact anyone at the University about your childcare vouchers because Sodexo handle all the administration and should be able to answer all your queries. However if you need to speak to a University employee then please contact the HR Services Team or email: benefitsplus-hr@salford.ac.uk

7) Can I use childcare vouchers for my teenage children?

Yes. It is a common misconception that childcare vouchers are for nursery aged children only. You can use the vouchers to pay for childcare for children up to the age of 16, including holiday playschemes and after-school activities.

8) What happens when if I go on maternity leave?

If you already receive childcare vouchers and go on maternity leave with another child then you may continue to receive vouchers. However due to the change in your personal circumstances you may find that you don't need childcare vouchers for a while. The University will discuss your options with you before you take maternity leave.

9) How can I join when I don't know how much I am going to spend on childcare?

You can vary the amount of vouchers you receive every month so don't worry if you aren't initially sure how many vouchers you need. You can also save up your vouchers for when you need them most, e.g. during the summer holidays. In order to vary your voucher amount please contact Sodexo or make the changes using your on-line account.

Please be aware that it is important to monitor your Childcare voucher account to ensure you are not over odering vouchers. Under the conditions of the university's BenefitsPlusChildcare Voucher Scheme the cancellation or partial refund of vouchers already issued is not permitted under any circumstances.

10) What if I no longer need childcare vouchers?

You can stop your childcare voucher arrangement at any time through your on-line parent account with Sodexo.

11) Will participation in BenefitsPlus Childcare Vouchers have an impact on other pay elements and benefits which are based on my salary?

No.  We will use your Notional Salary to calculate any benefits or pay elements which are determined by your salary. These include:

  • Overtime
  • Occupational Sick pay
  • Holiday pay
  • Annual pay review
  • Occupational maternity, paternity and adoption pay
  • Pension benefits

However, please note that participating in a salary sacrifice arrangement can affect statutory payments, for example Statutory Maternity/Paternity Pay.

12) Will BenefitsPlus Childcare Vouchers affect my application for loans and mortgages?

The lender will write to the University for a reference and we will give them details of your Notional Salary which the majority of lenders will accept.

13) Will BenefitsPlus Childcare Vouchers always be in place?

The University is committed to operating BenefitsPlus Childcare Vouchers. However if for any reason the University cannot operate the scheme the situation will be reviewed. The University expressly reserves its right to alter the terms of BenefitsPlus Childcare Vouchers and the guidance detailed on the Human Resources website form part of the terms of participating in the scheme. The University is under no obligaion to operate a childcare voucher scheme and reserves the right to withdraw at any time and does not accept any liability to provide any form of compensation for any benefits lost from ceasing to operate the scheme.

14) How does BenefitsPlus Childcare Vouchers affect me for National Minimum Wage (NMW) purposes?

The University cannot pay at a rate below the NMW (currently £6.08 per hour over the age of 21).  As a result if the reduction in your salary takes your hourly rate below this level you will not be able to participate. It is unlikely any University employees will be affected by this but we will carry out checks to ensure this does not happen and will notify you should this be the case.

15) Will BenefitsPlus Childcare Vouchers have any effect on my entitlement to state benefits such as the state pension?

Your entitlement to state benefits depends on your earnings rather than the amount of Income Tax or NIC you pay. If your earnings are above the Lower Earnings Limit (£442 per month at 2011/2012 rates) your entitlement to benefits such as the Basic State Pension, Employment and Support Allowance and Jobseekers Allowance will be unaffected. The University will monitor earnings to ensure that any employees who may be affected will not be included within BenefitsPlus Childcare Vouchers.

Entitlement to state benefits is a very complex area.  Further advice can be found at www.hmrc.gov.uk (external link) or www.dwp.gov.uk (external link).

16) What if I also want to participate in other BenefitsPlus arrangements?

 Provided you meet the rules of entry for each scheme and the reductions for your chosen salary sacrifice options do not take your hourly rate below the NMW you will be able to participate in all schemes.

17) What impact will BenefitsPlus Childcare Vouchers have on my Working Tax Credits/Child Tax Credit/Child Support Agency payments?

Working Tax Credit (WTC) and Child Tax Credit (CTC) payments are based on your salary after pension contributions. As your salary will reduce under BenefitsPlus Childcare Vouchers, it follows that there may be a change to your WTC and CTC payments as they will be calculated on your reduced salary.

HM Revenue & Custom's (HMRC) Tax Credit calculator (http://ccincalculator.hmrc.gov.uk/CCIN0.aspx (external link)) can be used to give you an idea of how your Tax Credits may be affected.  If you currently receive Tax Credits we strongly recommend you use this calculator to determine whether childcare vouchers are beneficial to you.

Child Support Agency (CSA) payments are calculated using your take home salary.  As your take home salary will increase under BenefitsPlus Childcare Vouchers, it follows that there may be an increase in the amount of CSA payments. However, we understand that you are only required to inform the CSA if your take home pay increases by 5% or more.  Further advice can be found at http://www.csa.gov.uk (external link)

18) Will I lose any pension benefits as my salary is reducing?

BenefitsPlus Childcare Vouchers will not affect the pension benefits of any member of a pension scheme operated at the University.

19) What happens if I cease to be employed by the University?

The BenefitsPlus Childcare Vouchers arrangement will automatically terminate in the month you leave the University and any orders will be processed providing the salary you receive covers the salary sacrifice and it meets the rules of the scheme.