We’re crowdfunding on Crowdcube! Learn more

Where to find salary sacrifice on a payslip

  •  By
  •  Frankie Dewar

If you participate in a salary sacrifice scheme, you may be wondering where to find information about it on your payslip. In this article, we'll explore where you can find salary sacrifice information on your payslip, why it matters, and what you should look for.

What is a Salary Sacrifice Payslip?

A salary sacrifice payslip shows the details of your salary after salary sacrifice contributions have been deducted. It is important to understand your salary sacrifice payslip as it:

  • Allows you to keep track of your contributions towards the scheme
  • Helps you understand the impact it is having on your take-home pay
  • Give you the ability to identify any errors or discrepancies.

Why Does Salary Sacrifice Information on Your Payslip Matter?

Understanding the information on your payslip is important for a couple of reasons.

  1. It allows you to keep track of your contributions towards the scheme. This is important because your contributions will be deducted from your salary before income tax and National Insurance contributions are calculated. By keeping track of your contributions, you can ensure that you are benefiting from the tax and National Insurance savings.
  2. Your payslip can help you to understand how salary sacrifice affects your take-home pay. When you first join a salary sacrifice scheme, it can be difficult to predict how it will affect your finances. By regularly checking your payslip, you can see how much your take-home pay has changed and adjust your budget accordingly.

Where to Find Salary Sacrifice Information on Your Payslip

The location of salary sacrifice information on your payslip may vary depending on your employer and the payroll system they use. However, in general, you should look for a section titled "Deductions" or "Benefits". In this section you should be able to see:

  • Your salary sacrifice contributions
  • The name of the scheme you are participating in
  • Any additional information related to the scheme.

If you are having trouble finding salary sacrifice information on your payslip, it is best to contact your employer or HR department for assistance. They should be able to provide you with the information you need.

Salary sacrifice payslip before and after

What to Look for on Your Salary Sacrifice Payslip

When checking your salary sacrifice payslip, make sure to look for key pieces of information such as:

  1. Your Gross Pay: This is the amount of money you earned before any deductions were made, including your salary sacrifice contributions.
  2. Your Salary Sacrifice Contributions: This is the amount of money that has been redirected towards the scheme.
  3. Your Taxable Pay: This is the amount of money that is used to calculate your income tax.
  4. Your National Insurance Contributions: This is the amount of money that is deducted from your salary to contribute towards National Insurance.
  5. Your Net Pay: This is the amount of money you will receive after all deductions have been made. This includes your salary sacrifice contributions.
  6. Additional Information: Depending on your employer and the scheme, your salary sacrifice payslip may include additional information. This can include the name of the scheme and the benefits or perks that you are entitled to.

Understanding the information on your salary sacrifice payslip is essential for keeping track of your contributions towards the scheme. This ensures that you are benefiting from the tax and National Insurance savings, and identifying any errors or discrepancies.

How Does a Salary Sacrifice Scheme Work?

A salary sacrifice scheme works by allowing you to give up a portion of your salary in exchange for non-cash benefits.

In a salary sacrifice pension scheme you may choose to give up £500 of your monthly salary in exchange for £500 worth of pension contributions. This means that your take-home pay will be reduced by £500, but you will not pay tax or National Insurance on this amount.

The benefits or perks that you can choose from may vary depending on the salary sacrifice scheme offered by your employer. Some common benefits or perks that are offered include:

  • Childcare vouchers: These can be used to pay for childcare expenses, such as nurseries or after-school clubs.
  • Pension contributions: Your employer may offer to contribute a portion of your salary towards your pension fund. Read more in our Salary sacrifice for pensions explained article.
  • Cycle to work scheme: This allows you to purchase a bicycle and accessories through your employer, with the cost spread over a period of time.
  • Health insurance: Your employer may offer health insurance as part of the salary sacrifice scheme.
  • Technology: This could include purchasing a computer or mobile phone through the scheme.

By participating in a salary sacrifice scheme, you can enjoy tax and National Insurance savings on the amount of money you contribute towards the scheme, which can result in significant savings over time.

Learn more in our dedicated salary sacrifice article, and see whether you're missing out.

Tips for Understanding Your Salary Sacrifice Payslip

  1. Read the instructions: Your employer or payroll provider may include instructions or a guide on how to read your payslip. This can help you to understand the different sections and information presented.
  2. Keep track of your contributions: Make a note of how much you contribute towards the salary sacrifice scheme each month. Ensure that the amount reflected on your payslip is accurate.
  3. Check for errors: Look for any discrepancies on your payslip, such as an incorrect salary sacrifice amount or tax calculation. If you spot a mistake, contact your employer or HR department as soon as possible to rectify the issue.
  4. Understand the impact on your take-home pay: By regularly checking your payslip, you can see how much your take-home pay has changed and adjust your budget accordingly.

Conclusion

Understanding your salary sacrifice payslip is important for:

  1. Keeping track of your contributions towards the scheme.
  2. Ensuring that you are benefiting from the tax and National Insurance savings.
  3. Identifying any errors or discrepancies.

When checking your payslip, make sure to look for key pieces of information such as:

  • Gross pay
  • Salary sacrifice contributions
  • Taxable pay
  • National insurance contributions
  • Net pay.

If you are having trouble finding the salary sacrifice information on your payslip, contact your employer or HR department for assistance.

Participating in a salary sacrifice scheme means you can enjoy tax and National Insurance savings, as well as a range of non-cash benefits or perks.

Looking to trim your business' National Insurance bill with salary sacrifice?

Frankie Dewar

Join Penfold and bring financial wellbeing to your team

Give your team a top pension and boost their financial wellbeing

Boost your benefits package to keep and tempt the best talent

Get industry-beating account management at no extra charge

Book a Demo