The importance of understanding salary sacrifice

The importance of understanding salary sacrifice

Global employee engagement company, Reward Gateway has released the next generation of salary sacrifice products with the creation of its SmartPay eng

Global employee engagement company, Reward Gateway has released the next generation of salary sacrifice products with the creation of its SmartPay engine, a centralised administration platform completely automating any payroll benefit schemes for users and businesses.

 

With salary sacrifice regulations and adherence continually being scrutinised, SmartPay is a unique, end-to-end automation engine which ensures benefit compliance while drastically reducing the time and administration required to run a benefits programme irrespective of the size of the business.

 

SmartPay technology takes into account factors such as salary and hours worked, including where an employee’s salary and working hours change weekly or monthly – something completely unique to SmartPay. It also takes in to account any other deductions being made to ensure that no employee falls below the minimum wage. However, the SmartPay platform is not limited to salary sacrifice benefits and can also power Net Payroll Deduction schemes such as SmartTech – the salary deduction benefit that enables employers to offer employees the ability to purchase technology (and white goods) directly from their salaries with no administration or approval requirements, and no tax implications.

 

The platform also allows HR professionals to manage payrolls, windows, applications and invoices in one place. Cycle-to-Work, Childcare Vouchers and SmartTech can be managed and administered through SmartPay, allowing managers to forgo the need to create identical payrolls or windows for each product.

 

Commenting on the launch of SmartPay, Rob Boland, Group Director of Product and Client Success at Reward Gateway, said, ‘It’s no surprise to see HR managers expressing their concerns on the changing world of salary sacrifice. In the past 12 months, the HMRC have openly expressed their intention to scrutinise the application and usage of salary sacrifice programmes to ensure full compliance. A number of regulatory fines have been handed out for non-compliance over the past 12 months.

 

“SmartPay is future-proofed to deal with such changes, enabling HR to offer employees the benefits of salary sacrifice without worrying about compliance. Few other companies can offer this sort of security to their clients”

 

The official announcement of the SmartPay engine comes as Reward Gateway furthers its reach of the SmartTech product, by acquiring payroll deduction company, Clarkwood Enterprises. The addition of Clarkwood will allow the company to further its mission to help make the world a better place to work with more U.K. companies, and help clients continue to build strong benefits portfolios and stand-out as employers of choice with unique benefits.

 

Gavin Clarke, Founder of Clarkwood Enterprises comments on the acquisition: “As the UK leaders in employee engagement, there isn’t a better company than Reward Gateway for us to trust our loyal clients with. The businesses we’ve worked with will now have an enhanced offering with more options whilst being able to reduce administration time through SmartPay. It’s a bright future for our clients with Reward Gateway.”

 

To find out more about SmartPay, please visithttp://success.rewardgateway.com/smartpay/what-is-smartpay

 

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