Employee Information Booklet

Transcription

1 Employee Information Booklet Save on your childcare costs! sign up... and start saving! eib/nhs_erewash_ccg/march2014

2 The Fideliti Childcare Voucher Scheme. NHS Erewash CCG recognises how important it is to achieve a balanced working life, particularly if you have demands made on you as a parent. They are also very aware of the high costs associated with childcare. To help with these costs you are able to convert a portion of your salary into Fideliti Childcare Vouchers allowing you to make significant savings on your existing childcare costs. This booklet has been designed to help you understand the way the scheme works and to determine if the scheme is right for you. If you require any further information after reading this booklet, please contact the Fideliti Helpline on How does the scheme work? At present, your salary is subject to tax and National Insurance deductions. Under the childcare voucher scheme you are able to take a portion of your salary as childcare vouchers which are not subject to tax and National Insurance deductions. This is referred to as a salary sacrifice scheme. Please Note: From 6th April 2011 childcare voucher legislation changed for higher rate and additional rate tax payers. Under the new rules any new employees joining the scheme will have an earnings assessment when registering and will be restricted to the amount they are eligible to take in vouchers dependant on the tax bracket they are in, the new rates are shown below: Basic rate tax payer Higher rate tax payer Additional rate tax payer 55 per week / 243 per month 28 per week / 124 per month 25 per week / 110 per month An earnings assessment will be carried out when you first register by your employer to check you are requesting the correct amount of vouchers within your entitlement and also at the start of each tax year (April). Please note your registration is not fully complete until the earnings assessment has been completed. When your registration is complete you will receive an from Fideliti to confirm your details. 2. What is Salary Sacrifice? A salary sacrifice happens when an employee gives up the right to receive part of the monies in cash due under his/her contract of employment. The sacrifice would be made in exchange for providing the employee with childcare vouchers. The sacrifice is effective when the employee signs the salary sacrifice agreement to vary their terms and conditions of employment. This variation relates to the right to receive contractual salary only.

3 The table below shows the potential savings you could make. For a more accurate indication of the savings you could be making use the Fideliti savings calculator at Monthly Vouchers Annual Savings Illustrations based on 20% taxpayer assuming Contracted Out NI contributions Illustrations based on 40% taxpayer assuming Contracted Out NI contributions. *Please see note on page 2 regarding childcare voucher legislation changes effective from April Monthly Vouchers Annual Savings How much money could I save?

4 3. Are all employees eligible to join the scheme? Childcare Vouchers are available to all employees using registered childcare for children from 0-16 years. However, after the childcare vouchers have been deducted your salary cannot drop below the national minimum wage and it is important that your salary does not drop below the lower earnings limit as this could affect other state benefits.. If you have any queries or require any assistance in calculating your eligibility for the scheme please speak to the Fideliti Helpline on What is the maximum contribution allowed per employee? Employees are eligible to the following: Basic rate tax payer Higher rate tax payer Additional rate tax payer 55 per week / 243 per month 28 per week / 124 per month 25 per week / 110 per month You may increase or decrease your vouchers by providing one months notice to Fideliti. This can be done by ing enquiries@fideliti.co.uk or by putting the request in writing. 5. Are childcare vouchers available to all employees or is it limited to each family? Childcare Vouchers are available to each parent or legal guardian, enabling you to make twice the saving. Each family could save over 1,700 per annum on childcare fees. Your partner should contact their employer to determine if they operate a childcare voucher scheme. 6. Will my childcare provider accept the vouchers? Childcare providers are not obliged to accept vouchers. You will provide Fideliti with the contact details for your childcare provider and an information pack will be sent to them. If they choose to register with Fideliti then they can accept vouchers. If you have multiple childcare providers, the voucher allowance can be allocated in any way you require.

5 7. What are the qualifying conditions? Vouchers cover children up to the age of 16 and can only be used to pay registered and approved child carer(s), these include: Nannies and Au Pairs Nurseries Playgroups Childminders Independent Nursery Schools Before and After School Clubs Day Care Pre-schools Holiday Clubs/Activities Did you know you can save on your childcare costs for children from 0-16 years!

6 8. How will the scheme work if my childcare costs vary from month to month? You should determine your annual childcare costs and divide this into a monthly amount. Vouchers do not have to be used each month and do not expire. 9. Can I change the amount I take in childcare vouchers? You can change your monthly amount but you must give one month s notice to Fideliti in writing. This can be done by ing enquiries@fideliti.co.uk or by putting the request in writing. 10. Can I receive a refund for any vouchers I no longer require? Childcare vouchers are non-refundable, so you should only order childcare vouchers that you are able to use. 11. How will this affect my pension? The current position in respect of your NHS pension is as follows : Provided that you pay the minimum for NI contributions, taking childcare vouchers should not affect your basic State Pension. However, if you contribute to a Second State Pension, there may be a small effect on this. For further guidance please contact your local tax office. Your NHS pension contributions will reduce, as they will be based on your reduced salary. If you are a member of the Existing NHS Pension Scheme (Amended 1995 Section), then currently the pension benefits are based on the best final salary you have received in the last three years prior to retirement. If you are a member of the New NHS Pension Scheme (2008 Section), then currently the pension benefits are based on the average of the best 3 years salary of the final 10 years prior to retirement. In the unlikely event of benefits becoming payable whilst you are in the scheme (e.g. early retirement or you retire due to ill health or die) the benefits due will be reduced. However, once you no longer receive childcare vouchers and your full salary has been restored, pension contributions and future benefits would be based on the restored salary, provided you had received this salary for at least a year. If you are contributing to a Private Pension Scheme, you should discuss the possible effects with an independent financial advisor. However, this is likely to change in April 2015.

7 12. Will my Maternity Pay/Adoption Pay be affected if I receive vouchers? If you are entitled to Occupational Maternity Pay (OMP) or Occupational Adoption Pay (OAP) for the purpose of calculating your OMP/OAP your notional salary (full salary) will be used. Statutory Maternity Pay (SMP) is calculated on your average weekly earnings during weeks of your pregnancy. Statutory Adoption Pay (SAP) is calculated in the 8-week period prior to your matching date (approximately). For the purpose of calculating your SMP/SAP your lower salary (after childcare vouchers have been deducted) will be used. By remaining on the voucher scheme throughout the qualifying period your SMP/SAP during weeks 1 6 of your maternity leave will be reduced as this will be paid at 90% of your lower salary. If you are entitled to OMP/OAP you will receive full salary. To ensure that your SMP/SAP is not reduced, you should consider whether to leave the childcare voucher scheme by week 17 of the pregnancy or prior to your qualifying period. 13. What will happen to my childcare vouchers when I finish for maternity/adoption/additional paternity leave? If you are in receipt of childcare vouchers when you commence Maternity, adoption or additional paternity leave, you are entitled to continue to receive childcare vouchers at the same level throughout your maternity/adoption/additional paternity leave. 14. Can I join the childcare voucher scheme during my maternity/adoption leave? You are able to join the childcare voucher scheme whilst you are in receipt of Occupational Maternity Pay/Occupational Adoption Pay. The amount you request in vouchers will be sacrificed from your salary for as long as there is enough OMP/OAP to make the sacrifice from. Once you have to come to the end of OMP/OAP or in the case of your OMP/OAP not covering the cost of the voucher you will no longer be able to participate in the scheme. Upon your return to work you will be able to rejoin the scheme.

8 15. Will my Statutory Paternity Pay be affected if I receive vouchers? Statutory Paternity Pay (SPP) is based on NI contributions. Provided that you remain above the LEL your SPP should not be affected. If you are entitled to Occupational Paternity Pay this is based on your salary during the qualifying period. Your notional salary (full salary) will be used for this calculation. 16. Will my Statutory Sick Pay and State Pension be affected if I receive vouchers? As long as your salary does not drop below the lower earnings limit these benefits will not be affected. 17. Could accepting childcare vouchers affect my Working Tax Credit (WTC) or Child Tax Credit (CTC)? Yes. Your entitlement to WTC and CTC is dependant on many factors including the number of hours you work, how many children you may have and whether you pay any eligible childcare costs. A salary sacrifice for childcare vouchers can reduce your relevant pay for tax credit purposes as the value of these benefits are not included as income. Therefore, potentially increasing the amount you receive in tax credits. Some families receive help with the cost of childcare through tax credits - i.e. the childcare element. If you qualify for the childcare element and are receiving childcare vouchers then the voucher amount will be deducted by the Inland Revenue from your childcare costs before calculating your entitlement and therefore may reduce the amount of support you receive. You should therefore consider whether it would be more beneficial to receive tax credits help towards your childcare costs, or taking childcare vouchers. To check whether you would be better in receipt of childcare vouchers or tax credits you can use the HMRC Childcare Indicator gov.uk/calcs/ccin.htm. 18. Is there a minimum period of participation? You are able to leave the scheme at anytime following a lifestyle change by providing one month s notice to Fideliti. This can be done by ing enquiries@fideliti.co.uk or by putting the request in writing.

9 19. What about my redundancy pay if my post is made redundant? A redundancy lump sum is based on reckonable service at date of termination calculated on the basis of one month s pay for each complete year. A minimum of two years continuous service is required with a maximum of 24 years service being counted. The salary at termination, or where earnings are variable an average of the last 3 months pay, is used to determine a month s pay. Therefore if someone s pay had been reduced owing to childcare vouchers this would in turn reduce any redundancy payment. Early Retirement on grounds of Redundancy - Members of the NHS pension scheme who are made redundant and who are eligible to receive pension benefits may also have their benefits affected if their pensionable pay in the last 3 years has been reduced owing to childcare vouchers. If there is a possibility of your post being made redundant, then you should consult with your HR Advisor about the likely date of redundancy before deciding whether to start, or continue taking vouchers any longer. 20. How will I receive vouchers? Fideliti offer 3 types of vouchers to pay your childcare provider, this allows you to choose which best suits your requirements. 1. Electronic Vouchers You will be given an online account to access the Fideliti website. You can log on at any time to view your account or make payment requests. You can also set up a regular payment where Fideliti will automatically pay your childcare provider at the specified frequency. 2. Auto-Payment Vouchers This is an automated payment direct to your childcare provider each month on a date you specify. The easiest method if your payments will remain the same each month. Electronic and Auto-Payment vouchers also give you access to a discount scheme which offers discounts for family days out, holidays, over 200 retail discounts, eating out and many more. Once registered on the Fideliti scheme you can visit our discount site to view the full range of discounts we offer. 3. Paper Vouchers Paper vouchers are personalised with your details and posted to your home address to arrive on or around pay day. These are then passed on to your carer(s) who can claim them in any of the following ways: Tel : Post: returning the voucher to us at the address provided childcare@fideliti.co.uk Online: via their online account

10 Joint Parent Accounts If both parents are registered on the Fideliti childcare voucher scheme and have electronic vouchers, these accounts can be linked to create a joint parent account. This allows you to manage both of your vouchers through one combined account enabling you to make one payment to your childcare provider rather than having to logon and make two separate payments from two different accounts. Both parents do not have to work for the same company but do have to be registered for Fideliti Vouchers. 21. How do I apply? Online You can register online at Please quote the following scheme reference number ERE5350. Alternatively, please call the Fideliti Helpline on and a member of our Customer service Team will forward you a Salary Sacrifice Agreement Form. Please return the completed form directly to us in any of the following ways: Post Fideliti Limited, Unit 1a, Birchwood One Business Park, Dewhurst Road, Warrington WA3 7GB Fax enquiries@fideliti.co.uk Any further questions? Please contact the Fideliti Helpline Call: enquiries@fideliti.co.uk Visit: or Kerryann Griffiths at the Greater East Midlands Commissioning Support Unit Call: Kerry.Griffiths@gemcsu.nhs.uk Our Online chat is available 8.30am - 6pm Monday to Friday MOBILE APP

11 With the money Dad saves... we get to go to the match every week What will you do with the money you save with childcare vouchers?

12 Freephone: MOBILE APP Fideliti Ltd Unit 1a, Birchwood One Business Park, Dewhurst Road, Warrington WA3 7GB