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Employee Benefits
For an employer, recruiting and retaining the quality of workforce required can the hardest of tasks. Salary remains the principle staff incentivisor. But providing employee benefits rather than extra salary can be better value for both employer and employee.
Premium / contribution costs are normally tax deductible business expenses (just as is salary), but in many cases employer National Insurance is not payable on the premium cost, as it would be on salary. This is an immediate employer saving of the 12.8% NI.
The employee benefits from group insurance rates (normally cheaper than individual rates), and is moreover not meeting the cost out of net (post tax and NI) income. So each pound of salary potentially forgone provides far more than a pound’s worth of benefit to the employee (and can save the employer NI as well.)
Typical benefits include:-
The company principals can themselves benefit from the group rates and underwriting terms available, and save on the cost of self-provision from post-tax / NI personal income.
We annually review our clients schemes to ensure best terms and rates, actively switching providers if necessary to ensure best cover terms at best cost.