Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Example of Salary Payment Certificate by lmz29365

VIEWS: 1,210 PAGES: 11

Example of Salary Payment Certificate document sample

More Info
									 Title:               Salary Sacrifice Childcare Voucher Scheme
 Summary:             Details of the scheme whereby you can sacrifice part of your salary for
                      childcare vouchers and save money through tax and national insurance
                      exemptions.
 Target school(s):    All
 Specific schools
 For attention of:    All Council employed staff only
 Author:              Val Bolger
 Contact:             LBHF Human Resources
 Email:               Val.bolger@lbhf.gov.uk
 Telephone:           020 8753 2621
 Date:                13 October 2010
 Action required/     For information
 due date:


Save on Childcare costs with childcare vouchers as part of a salary sacrifice scheme. You can
sacrifice up to £243 a month and save on the Tax and National Insurance. If you earn up to
£37,400 and sacrifice £243 you can save £75.33 a month. If you earn more and pay higher tax you
could save £99.63.

To find out more call free phone 0800 028 3008, email una.mcgurran@employersforchildcare.org
or apply online www.employersforchildcare.org.


Employee’s Guidance

Salary Sacrifice Childcare Voucher Scheme

PLEASE READ CAREFULLY AND RETAIN FOR FUTURE REFERENCE

The London Borough of Hammersmith & Fulham in conjunction with Employers For Childcare
Vouchers Ltd has introduced a scheme whereby you can sacrifice part of your salary for childcare
vouchers.

Why would you consider doing so? Childcare vouchers may save you money through Tax
and National Insurance exemptions.

The following is an outline of the childcare voucher scheme. The information is provided in a
question and answer format, and explains various topics you need to consider before opting into a
salary sacrifice childcare voucher scheme.
If, after reading this document, you have any queries, or would like to opt into the scheme, please
contact Employers For Childcare Vouchers Ltd for further information and application forms:

                      Employers For Childcare Vouchers Ltd
                      137a Hillsborough Old Road
                      Lisburn
                      Co Antrim
                      BT27 5QE
Email:                business@employersforchildcare.org
Tel:                  Freephone - 0800 028 3008
Opening Hours         Mon – Fri 8am – 6pm


The scheme is administered by the Payroll Manager, Eric Kersey, Room 317, Hammersmith
Town Hall, Telephone 020 8753 1885

Contents of Employee’s Guide

Topic                                        Page Number

Step by Step Guide                                  2
General                                             3
Potential Savings                                   5
Pension, SSP & SMP                                  6
Tax Credits                                         7
Joining the Scheme                                  8
Completing Registration Forms                       9
Using the online voucher system                     10
Disclaimer                                          12


STEP BY STEP GUIDE

You should consider your own circumstances and decide whether or not you wish to opt into the
childcare voucher scheme. To join, or for further information contact Employers For
Childcare Vouchers Ltd, who will provide you with all the necessary forms.

Below is the step by step procedure for joining the scheme:

   1. Complete and sign an agreement to vary your terms and conditions of employment (Opting
      In Form – Form 3B). To enable us as your employer to provide you with childcare vouchers
      to the value of the amount you ‘sacrifice’ from your salary. This agreement should be
      returned to Employers For Childcare Vouchers Ltd.

   2. Complete a Parent Registration Form – Form 3a and have your childcare provider complete
      a Childcare Provider Agreement Form* – Form 3c. Return both forms to Employers For
      Childcare Vouchers Ltd for processing with a copy of your child’s birth certificate.

        Once the form is processed by Employers For Childcare Vouchers Ltd an account will be
        set up for you and you will receive the login details via post, for security reasons the pin
        numbers will arrive separately a few days later.

        * If your childcare provider currently accepts childcare vouchers a Childcare Provider
           Agreement Form is not required – for clarification please contact Employers For Childcare
           Vouchers Ltd Freephone Helpline 0800 028 3008

   3. Payroll will make the necessary deductions from your salary and arrange for Employers For
      Childcare Vouchers Ltd to credit your account with the value of childcare vouchers you
      sacrificed by the 15th of each month. Application forms received by the end of the month
      will be set up in time for the 15th of the following month.
                                            Page 2 of 11
     4. When you are ready to pay your childcare provider simply login to: www.efcvouchers.com
        or contact the Telephone Redemption Line on 028 9266 0479 and instruct Employers For
        Childcare Vouchers Ltd to issue payment, as full or part payment of your childcare costs, to
        your chosen childcare provider.

        Payment will be in the providers account within 3 banking days.

        The diagram below summarises the ordering, payment, and redemption procedures:



             Stage 5               Employers For Childcare
         Payment Issued by              Vouchers Ltd                         Stage 2
              BACS                                                     Payroll places order
                                                                          with payment



                                                    Stage 3
                                               E-Vouchers available
        Childcare Provider                                                    Employer
                                              in employees account

                            Stage 4
                        Employee instructs
                         payment to be
                             made
                                                                              Stage 1
                                                                          Payroll adjusts
                                                                          salary payment
                                             Employee

GENERAL

Q:    What are childcare vouchers?
A:    Childcare vouchers are an acceptable method of paying for registered childcare. Childcare
      vouchers up to a maximum of £243 per month (£55 per week) are exempt from Tax and
      National Insurance Contributions (NIC); therefore offering potential savings for working
      parents who use registered childcare.

Q:    What does the term ‘salary sacrifice’ mean?
A:    A ‘salary sacrifice’ occurs when an employee gives up the right to receive part of their cash
      element of pay due under their contract of employment.

       Under the Childcare Voucher Scheme employees may ‘sacrifice’ part of their pay in exchange
      for childcare vouchers, with the potential to save money on Tax and National Insurance
      Contributions. For further information visit the HMRC web site www.hmrc.gov.uk and search for
      Salary Sacrifice Questions and Answers.

Q:    What are ‘Employers For Childcare E-vouchers’?
A:    Employers For Childcare E-vouchers are an online virtual childcare voucher system that
      employees have access to. This account holds their childcare voucher amount. Employees
      instruct Employers For Childcare Vouchers Ltd via the online account to transfer payments to
      their chosen childcare provider – this system works in a similar way to online bank accounts.
      If you use paper vouchers, we will process the payment when your childcare provider
      redeems the voucher. Your childcare provider will be paid faster and have less paperwork if
      you choose E-vouchers instead.

Q:    Can I receive childcare vouchers for any child?
A:    In order to benefit from the scheme you must:

      1. Be the *parent or legal guardian of the child(ren), and
      2. Use registered childcare for your child(ren).
                                              Page 3 of 11
     A child qualifies to receive childcare vouchers up until the 1st September after the child’s 15th
     birthday (16th birthday for disabled children).

     *Parent means:

                 A child of the employee OR
                 A child who lives with the employee for whom they have parental responsibility

     NOTE: Home approved child carers & childminders who are related to the child will only
     qualify for childcare vouchers if they:

                 Mind at least one other child that is not related to them AND
                 Are registered with the specific registered body (in England this is Ofsted).

Q:   Am I restricted to the type of childcare I choose by using childcare vouchers?
A:   Employers For Childcare vouchers can be used to pay for all ‘registered childcare.’
     Registered childcare means that the childcare provider is registered with the appropriate
     national body and meets the requirements of the relevant National Standards. This includes
     registered childminders, day nurseries, crèches, play-groups, after-school and breakfast
     clubs, holiday schemes and workplace nurseries.
     Childcare vouchers can be used to pay for more than one form of childcare, for example if
     you use more than one type of childcare for one child, and/or if you use different childcare
     providers for a number of children.

Q:   Will my childcare provider accept vouchers as payment?
A:   It is your responsibility to contact your childcare provider(s) and ask if they are prepared to
     accept vouchers.

     If they have any doubts about the scheme they can contact Employers For Childcare
     Vouchers Ltd Freephone Helpline on 0800 028 3008. They can explain how childcare
     vouchers work, for example how and when payments are made.

     NOTE: If your childcare provider does not currently accept vouchers they will have to
     complete a Childcare Provider Agreement Form – Form 3c and return to Employers For
     Childcare Vouchers Ltd along with their registration certificate.

Q:   Is there a limit to the amount of vouchers I can purchase?
A:   You can purchase a maximum of £243 per month (£55 per week) which will be free from Tax
     and NIC. The maximum exemption is per employee, therefore both parents can purchase
     childcare vouchers and potentially make a double saving.

     The amount of vouchers you are able to purchase may be limited to ensure your gross
     monthly salary does not fall below £540 per month (Tax Earnings Threshold 2009/10) and the
     National Minimum Wage.

Q:   What if I change my childcare provider and have a balance in my e-voucher account?
A:   If you change your childcare provider you must notify:

               Employers For Childcare Vouchers Ltd – you will be required to complete 2 forms:

                1. A Parent’s Change of Details Form - Form 3e
                2. A Childcare Provider Agreement Form* – Form 3c

                * If your childcare provider currently accepts Employers For Childcare Vouchers Ltd a
                Childcare Provider Agreement Form is not required – for clarification please
                contact Employers For Childcare Vouchers Ltd Freephone Helpline 0800 028
                3008.


                                               Page 4 of 11
POTENTIAL SAVINGS

Q:    How much could I save under the scheme?
A:    Employees participating in the childcare voucher scheme are exempt from Tax and National
      Insurance Contributions on the value of the vouchers purchased, therefore the savings you
      make will depend on your salary and the National Insurance Contributions (NIC) rates you
      pay;

      If your salary is up to £43,875*, you save £75.33 per month (sacrificing £243 per month)
      If your salary is over £43,875* you save £99.63 per month (sacrificing £243 per month)

      *These figures are current for the Tax year 2010-11, but are subject to Inland Revenue
      changes.

      Examples of the potential savings are:


                                  Higher rate        Higher rate
                   Basic rate       Tax up to         Tax over
                   Tax               £43,875          £43,875


     £55           £17.05         £17.05            £22.55
     per week      per week       per week          per week
     £243          £75.33         £75.33            £99.63
     per month     per month      per month         per month

      The maximum amount of £243 per month (£55 per week) Tax & NIC exemption is per
      employee not per child, therefore both parents can purchase childcare vouchers and avail of
      the savings.

      We, as your employer, will be able to advise you on what National Insurance Contribution you
      currently pay. You may also contact the Inland Revenue directly for further information.


Q:    Am I able to return any unused vouchers?
A:    Yes. HMRC have advised us that the voucher amount can only be returned in exceptional
      circumstances and in these cases refunds can be given.

      Please therefore think carefully about the amount of vouchers that you require each month
      before placing your initial order. For example do not order £243 each month if your childcare
      costs are only £180 per month - you will not be able to use the excess amount. However, if
      your childcare costs are going to increase during school holidays, it is advisable to calculate
      the annual childcare costs, divide by twelve, and take this amount.

      To get a refund you must complete a Reimbursement Form – Form 3f and pass it to Payroll
      who will endeavour to pay refunds at the next pay period available. Please note the refund
      will be subject to Tax and NIC when administered through your payroll. However, this is a
      contractual agreement and entirely at our discretion.




                                              Page 5 of 11
TAX CREDITS

Q:   Will my tax credits be affected?
A:   Tax credits help families on low to middle incomes. There are two tax credits:

           Child Tax Credit (CTC) is for people who are responsible for at least one child or
            qualifying young persons - 9 out of 10 families are eligible for this support

           Working Tax Credit (WTC) is for people who are employed or self-employed who
            usually work 16 hours or more a week. The childcare element provides help of up to
            80% of qualifying childcare costs up to £175 per week for one child or £300 per week
            for two or more children

     Childcare Vouchers can affect entitlements to tax credits because childcare vouchers are not
     counted as income for tax credit purposes. They can be affected in two ways:

           Your income for tax credits purposes will be reduced by the amount of pay you have
            given up in return for the benefit

           Your eligible childcare costs for tax credit purposes will reduce as it must only include
            costs you pay yourself – the amount you pay through childcare vouchers is not
            included

     If you do not know if you would benefit from childcare vouchers you can compare your
     current tax credit award with the Tax and NICs savings with vouchers by following the steps
     below:

     Step 1:
     Check your current tax credit entitlement (this is based on your family income and qualifying
     childcare costs before participating in the scheme)

     TIP: the HMRC Tax Credit calculator works out entitlement from the date of the enquiry to the
     next 5 April. The calculator can be accessed through the Childcare Indicator Calculator link
     on the Employers For Childcare Vouchers Ltd website www.employersforchildcare.org

     Step 2:
     Check your tax credit entitlement based on what your lower family income will be (your
     original pay less the amount of cash you have given up in return for childcare vouchers).
     This calculation should also use your lower childcare costs (your qualifying childcare costs
     less the amount met by vouchers).

     Step 3:
     Calculate your Tax and NICs saving on taking the childcare vouchers instead of cash pay

     Step 4:
     If the award from Step 2 plus the savings calculated in Step 3 is greater than the award from
     Step 1, you will benefit from the childcare voucher scheme.

     FURTHER ADVICE

     We recommend you contact the HMRC for further advice and information before deciding to
     participate in the childcare voucher scheme, their details are below:

     HMRC Telephone Helpline: 0845 300 3900 or

     HMRC Website: www.hmrc.gov.uk/childcare/interaction-tc-cv.htm




                                           Page 6 of 11
JOINING THE SCHEME

Q:   How can I join the scheme?
A:   To join the scheme you must contact Employers For Childcare Vouchers Ltd on
     08000283008, apply online via www.efcvouchers.com or get the forms via the Smart HR
     intranet site under all HR forms. The forms you need are:

        Vary Terms & Conditions Opting In Form – Form 3b – this must be returned to Employers
         For Childcare Vouchers Ltd, with a copy of the child’s birth certificate

        Parents Registration Form – Form 3a – this must be returned to Employers For Childcare
         Vouchers Ltd

        Childcare Provider Agreement Form* – Form 3c – this must be returned to Employers For
         Childcare Vouchers Ltd

     * If your childcare provider currently accepts Employers For Childcare vouchers a Childcare
          Provider Agreement Form is not required – for clarification please contact Employers For
          Childcare Vouchers Ltd Freephone Helpline 0800 028 3008.


Q:   How do I let my employer know the value of vouchers I require each month?
A:   Employees must complete the Vary T&C Opting In Form – Form 3b, this confirms an
     individual’s agreement to ‘sacrifice’ part of their salary in exchange for childcare vouchers to
     the same value and confirms the value of vouchers the employee will receive each month.

     The value of the vouchers will be the same each month until the employee opts out of the
     scheme. If an employee wishes to amend the value of childcare vouchers then a new
     Varying T&C Opting In Form – Form 3b will need to be completed and returned to Employers
     For Childcare Vouchers Ltd (subject to the notice requirements of the original agreement).

Q:   What if I need to change the value of childcare vouchers I receive?
A:   You should complete and return to Employers For Childcare Vouchers Ltd a new Vary T&C
     Opting In Form – Form 3b, (subject to the notice requirements of the original agreement).
     The above form is available from Employers For Childcare Vouchers Ltd.

Q:   What happens if I join the scheme and then decide I do not want to receive vouchers
     anymore?
A:   If you wish to opt out of the scheme at the end of the variation of contract period simply do
     not complete a further Vary T&C Opting In Form – Form 3b.

     In addition if you wish to opt out of the scheme before the agreed duration period ends you
     may do so as long as you provide Payroll AND Employers For Childcare Vouchers Ltd with 1
     month’s written notice, by completing a Vary T&C Opting Out Form – Form 3d


     Vary T&C Opting Out Form – Form 3d is available from Employers For Childcare Vouchers
     Ltd

Q:   Can I authorise a third party to have access to my online account with Employers For
     Childcare Vouchers Ltd?
     Yes. Employers For Childcare Vouchers Ltd can provide access to a third party by
     completing a Third Party Access Agreement – Form 3g and returning it to Employers For
     Childcare Vouchers Ltd.

     NOTE: The third party will be required to answer security questions relating to the account
     when contacting Employers For Childcare Vouchers Ltd.



                                            Page 7 of 11
COMPLETING REGISTRATION FORMS

Application forms are available from Employers For Childcare Vouchers Ltd on 0800 028 3008, or
download the forms from the Smart HR intranet site under all HR forms. Or you can apply online
via www.efcvouchers.com

All completed registration forms must be returned to Employers For Childcare Vouchers Ltd.

1. Parent Registration - Form 3a

   To be completed by the Parent/Employee. Put the details of the child for whom the childcare
   voucher payment relates to. The Registration Authority or number is the local authority the
   childcare provider is registered with. This should be returned to Employers For Childcare
   Vouchers Ltd with a copy of the child’s birth certificate.

2. Vary Terms & Conditions Opting In Form – Form 3b

   Point 1.4 of the form – The amount you enter in here will be the amount deducted from your
   salary on a weekly/monthly basis. The maximum you can take in childcare vouchers is £243
   per month. If your childcare costs are less than this then enter in the relevant amount.

   Point 1.6 of the form – The start date is the date you wish to start childcare vouchers being
   reduced from your salary, or the next available pay period if forms are received after salary has
   been processed. If you are unsure of the finish date of your registered childcare you can leave
   this blank.

3. Childcare Provider Agreement Form* – Form 3c

   To be completed by the childcare provider; this supplies Employers For Childcare Vouchers Ltd
   with their name, address, bank details for BACS payments. In addition a copy of the childcare
   providers Registration Certificate or number is required.

   * If your childcare provider currently accepts Employers For Childcare Vouchers Ltd a
     Childcare Provider Agreement Form is not required – for clarification please contact
     Employers For Childcare Vouchers Ltd Freephone Helpline 0800 028 3008

   In addition please speak to your childcare provider and inform them that you will be paying
   all/part of your childcare costs by e-vouchers.

The above forms are available from Employers For Childcare Vouchers Ltd.

Returning completed application forms:

    Parent Registration - Form 3a with a copy of the child’s birth certificate
    Childcare Provider Agreement – Form 3c (if applicable) &
    Vary Terms & Conditions Opting In Form – Form 3b to:


                      Employers For Childcare Vouchers Ltd
                      137a Hillsborough Old Road
                      Lisburn
                      Co. Antrim
                      BT27 5QE




                                            Page 8 of 11
USING THE ONLINE VOUCHER SYSTEM

Q:   How do I use the Employers For Childcare E-voucher system?
A:   When employers register for the scheme they will be issued with a Username, Password and
     PIN from Employers For Childcare Vouchers Ltd enabling you to pay your childcare provider.
     Login to:

www.efcvouchers.com




Q:   What if I forget my password?
A:   Along with your logon details you will be issued with a business card which you can use to
     record your details. If you have forgotten your password please phone Employers For
     Childcare Vouchers Ltd on 0800 028 3008 and they will provide you with another password
     after confirming some security details with you.

Q:   When will my account be credited with the voucher amount?
A:   Your account will be credited upon receipt of payment from Payroll to Employers For
     Childcare Vouchers Ltd on the 15th of each month. Note: Employers For Childcare Vouchers
     Ltd will send an email informing employees who have supplied us with an email address that
     their account has been credited. Employers For Childcare Vouchers Ltd will notify employees
     in advance of Public Holidays and office closure in the event that payments may be affected,
     via our web and voucher site.

Q:   How do I make payments to my childcare provider?
A:   As soon as your employer has forwarded payment to Employers For Childcare Vouchers Ltd,
     your account will be credited and you can then use this amount as full or part payment of
     your childcare costs.

     When you are ready to pay your childcare provider simply go to the Payments screen and
     instruct Employers For Childcare Vouchers Ltd to issue payment, as full or part payment of
     your childcare costs, to your chosen childcare provider. All payments received before 3pm
     daily are processed by BACS and payment will be in the childcare providers’ bank account
     within 3 working days. Payments received after 3pm will be processed the next working day.

     NOTE: Employers For Childcare Vouchers Ltd will send an email informing employees who
     have supplied us with an email address that their account has been credited.

     NOTE: Employers For Childcare Vouchers Ltd will notify Employees in
     advance of Public Holidays and office closure in the event that payments may be affected.



                                          Page 9 of 11
Q:   What if I don’t have access to the internet?
A:   An automated telephone redemption line is also available; using this you can access your
     balance and instruct Employers For Childcare Vouchers Ltd to transfer payments to your
     childcare provider. Telephone Redemption Line: 0289 266 0479.

Q:   What are the advantages and features of the e-voucher system?


       ADVANTAGES TO EMPLOYEE OF E-VOUCHERS

         Simple and easy to use
         24/7 online and telephone access to account information
         Standing order facility to pay carer
         Easy tracking of transactions
         Multi-childcare provider options
         Not subject to variations on postal service, or loss of vouchers
         Fast payments straight into the care’s bank account



       ADDITIONAL FEATURES OF E-VOUCHERS


         You can set up reminders to remind you to make payment to
          your childcare provider or remind you of special dates/occasions

         Frequently Asked Questions

         You can send a message to Employers For Childcare Vouchers
          Ltd
         You can view existing childcare providers in your area and
          access practical advice on Childcare Solutions by linking on to
          www.employersforchildcare.org

Q:   Is there a time limit on my account?
A:    Your voucher account will remain valid for up to 18 months from the date of the last deposit
      transaction.

Q:   I am leaving my current employer and starting a new job with a different employer,
     what happens to my childcare vouchers?
A:   Childcare vouchers are issued under the terms and conditions of contract of employment
     with your employer and cannot be transferred to a new employer.

     It is the employer’s (and employees) responsibility to ensure that vouchers are used prior to
     last day of working or to arrange to have them reimbursed to the employee. To receive a
     reimbursement, employees should complete a Reimbursement Request (Form 3f) and return
     it to Payroll who will forward to Employers For Childcare Vouchers Ltd, and a refund will be
     issued. The refund will be made payable to the employer who can then make payment to the
     employee through the payroll and will be subject to the employee’s current rate of Tax and
     NIC.




                                             Page 10 of 11
DISCLAIMER

        The London Borough of Hammersmith & Fulham has made every effort to ensure the
         information provided is factually correct. However it is up to you to decide whether it is
         beneficial for you to enter into a childcare voucher scheme.

        All individual members of staff are advised to consider their own circumstances before
         reaching a decision on whether or not to opt into the Childcare Voucher Scheme.

        Employers For Childcare Vouchers Ltd cannot be held liable for content as HMRC
         regulations are subject to change and may impact on the content of the guide.

        You may also wish to contact HMRC for advice and information. Details are contained
         on their website at the following address www.hmrc.gov.uk/childcare




                                         Page 11 of 11

								
To top