Why offer this benefit?
Wearables
Promote health and wellbeing as many employees use their Wearable to track steps and other fitness goals.
Tablet/Laptops
When surveying employees as to why they are taking out a particular benefit, we frequently find it is parents who are ordering a device for their son or daughter for educational purposes. Parents are genuinely grateful that their employer has facilitated this for them.
Mobile Phones
Although this benefit has universal appeal, in our experience the benefit tends to be offered by businesses who are keen to attract, retain and incentivise employees who are new to the workplace, such as graduates and apprentices.
How it works
The employee selects the piece of technology they require within the permitted limits and once approved, it is dispatched to their home or (if permitted) work address, usually within five working days.
Set-up requirements
Employer confirms the limits they wish to allow employees to spend up to on technology. You don’t have to offer all of the technology benefits at once. Several employers have chosen to initially offer Wearables as the outlay per device is much lower than phones or tablets and once they are comfortable with the cash draw, expand the offering over time. Limits can be set per item or collectively.
How is it paid for?
The Employer pays for the piece(s) of technology and the employee repays your business over twelve equal monthly deductions from salary. If the employee leaves during the repayment period any outstanding amount is recovered from the final salary.
Tax status
If operated through salary sacrifice then the employee saves NI at 8% or 2%, depending on their personal rate of tax and BIK charge applies (this is the most common approach). This benefit can also be facilitated as a Net deduction with no BIK (employee does not make NI savings).
