Merit Travel and Subsistence Benefit Module
The Merit Travel Benefit module allows agencies
to make substantial savings by reducing the
costs of employing staff. The module is used
in conjunction with HMRC approved dispensation,
where employees are able to claim allowances
for Travel and Subsistence. These allowances
can be paid as non-taxable pay, reducing tax
and NI liability for employees and Employers'
NI liability for the agency.
Merit's Travel Benefit Module enables allowances
to be applied under a salary sacrifice model,
further increasing the possible savings for
the agency.
As the employee's net pay is increased, the
scheme is beneficial to both staff and agencies
alike, and employee's experience an increased
loyalty to their recruitment agency.
The Module works through a series of checks
to ensure pay is correctly calculated including:
- Date of Birth and minimum wage criteria
- Travel mileage and travel times
- Employee has opted into the Scheme
- Timesheet eligibility
- Hours per day, per timesheet
- Mode of transport
- Consideration of previous payments
- Consideration of individual employee’s tax
status
- Trapping of payments made which are not
hourly
Parameters within the system enable the scheme
to be operated to specific criteria including:
- Rates of Subsistence
- Rates of Travel
- Mileage rates & caps per mode of transport
- Public transport daily rates
The sophisticated module analyses every payment
to ensure that processing the payment through
the module will be of benefit to both the staff
member and the agency.‘Revised calculations’
are compared to standard PAYE calculations,
and the net benefit is recorded against each
payment.
Introduction of the HMRC
benchmark scale rates for subsistence, which
came into effect on 6thApril 2009, has streamlined
the process of applying for dispensation, removing
the requirement for sampling.
Click here to request further information on
the Merit Travel Benefit Module
