How do I use a salary sacrifice scheme, such as childcare vouchers?

These schemes work by reducing the employee's salary and giving vouchers or another benefit instead. Since the tax and NI is worked out on the reduced salary, there is less tax and NI to pay.

There are two ways you can enter this in the system:
1) Reduce the gross salary by the amount of the vouchers.
or
2) When running the pay run, enter the figure as a negative amount in the other pay box.

Both of these methods will result in the correct calculation of net pay, but will appear slightly differently on the payslip. With either of these methods, you can also add an explanation to the payslip by entering it in the "Pay Advice" box during the pay run.

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