Benefits The CIPP has introduced new questions to understand more about the total reward package employers offer to employees. The responsibilities of the payroll department continue to grow and many payroll teams are now accountable for more than just salary payments.
Benefits offered
The graph shows that pensions offered outside of auto-enrolment, life insurance and childcare vouchers, are the most popular benefits offered to employees. It is a positive reflection on the diversity of reward packages today that only 3% of respondents advised their employer offers no benefits at all, seeing a dramatic reduction when compared to previous years when it was reported that 42% of respondents did not provide any benefits at all. This supports growing evidence that employees are being engaged through a wider reward remote than salary alone. When compared to results from previous years, the number of employers offering cycle to work schemes and car allowances has increased by over 100%. Given that a large proportion of the population was working from home during the pandemic, it is surprising to see the uplift in cycle to work schemes offered. HMRC introduced dispensations for cycle to work schemes and employees did not have to fulfil the 50% qualifying journey requirement. However, since that dispensation does not apply to any schemes entered from the 20 December 2020, the CIPP recommend that those who offer such schemes ensure that any awarded from that date onwards take steps to ensure conditions are met. If this condition was not met, the cycle would become a taxable benefit. It was highlighted early on during the pandemic that regardless of the employee’s lack of travel, unless a car was removed from their possession, the car would remain a taxable benefit. The increase in car allowance could be as a result of this. An employer removes a vehicle and instead provides the employee with a car allowance. Consideration must also be given to Optional Remuneration (OpRA) rules introduced in 2017. With the complex formula attached to calculating the taxable benefit of a car, where a car allowance is also offered, some employers may have chosen to remove the choice and instead just offer a car allowance. In 2018, 30% of respondents advised they provided company cars, whilst in data gathered within this year’s survey just 15% provide a company car, reducing the percentage by half.
13
Made with FlippingBook - Online magazine maker