Travel Benefit System
Merit Travel and Subsistence Benefit Module
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 your agency.
Merit's Travel Benefit Module enables allowances to be applied under a salary sacrifice model, further increasing the possible savings for your agency.
As your employees' net pay is increased, the scheme is beneficial to both staff and agencies alike, and employees 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 maximum 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.
Get in touch with us and find out how you can benefit.