Child care vouchers and smp (again)(9 Posts)
Can I just clarify with someone in the know before I phone up payroll and query my pay?
I normally receive £200 ccv, I am into my 5th month of mat leave and just dropping down to smp having been on an enhanced package.
Just recieved my payslip and I have earnt £96.15 additional mat pay and then smp. I have had £200 deducted for ccv and my net pay is £480.
Am I right in thinking they should have only deducted the £96.15 and my pay should be nearer £580?
If this is right, what should my words to payroll be after I've told them they've paid me wrong? I have a link to the hmrc document
Yes, you are right.
Email payroll nicely saying you think there has been an error, and although you understand deductions from vouchers can be made from additional maternity pay, HMRC say they can't be made from SMP, and you're not sure if they were aware or have just made an error. Enclose the link.
Thanks flowery will report back with their response!
I've had a call from HR today to tell me that I should have been called before may leave started to tell me my organisation won't subsidise the vouchers when I drop to SMP/no Pay and I can take a 2 year interest free loan to pay back the amount if i wish to continue taking them.
I queried the HMRC guidance to be told "that's the stance hr policy agreed"
I'm being forwarded the info from HR, where do I go from here?
(*flowery* I hope you see this!)
I would suggest replying declining the offer of a loan (!), and stating the following:
If they make any deductions from SMP in respect of childcare vouchers they will be in breach of HMRC regulations and you will be raising a grievance and contacting HMRC accordingly.
If they fail to provide any of your contractual benefits including childcare vouchers for the duration of your maternity leave, they will be discriminating against you in breach of the Equality Act 2010 and you will be raising a grievance accordingly with a view to a legal claim if necessary.
If they make any deductions from your pay after your return from maternity leave in order to 'claw back' costs incurred in providing your contractual benefits during maternity leave, they will be penalising you for taking maternity leave, discriminating against you in breach of the Equality Act 2010, and will also be making an unlawful deduction from your salary, and you will be raising a grievance with a view to legal claims if necessary.
He did agree that it shouldn't have been deducted although didnt say when they'd pay me back, I was too busy querying rhe HMRC guidance. He also said a few people had queried the policy but that was the stance of the council!
Can see this will be joyfull to sort out (large organisation!)
3 days on and I still haven't got the information he was going to send!
flowery is there any wording that would appear in a policy about CCVs that means they would not have to pay them? Eg treating all long term absence the same (sick, pat, special leaves)
I've also been told I won't be paid what I'm owed until next pay day due to NI complications it would cause. Is this correct?
No wording for a policy, no, an employer can't 'policy' their way out of legal obligations.
Can't see any reason why you can't be paid what you're owed now either, although I am by no means a payroll expert. I expect what they mean by NI complications is it's much easier just to add it on to next month rather than get their calculator out and make some adjustments.
Finally I've has the policy sent to me, had a few quick questions so thought I'd phone ACAS, they said they didn't have to pay them, try HMRC who said it was nothing to do with them and they shouldn't be paid and when I quoted
 Misunderstanding: employers sometimes believe that, where during statutory maternity leave the employee has no cash pay (or insufficient cash pay) to sacrifice, they should not continue to provide benefits as part of a salary sacrifice arrangement.
 Comment: the employee is entitled to continue receiving during OML and AML any non-cash benefits she was entitled to in the period before statutory maternity leave. This entitlement continues to apply even though the employee may not be receiving any salary or wages that can be sacrificed. SMP cannot be sacrificed in any circumstances. It may be discriminatory for a woman's pay to be reduced after her maternity leave as a direct result of her employer providing contractual non-cash benefits during her statutory maternity leave.^
From HMRC guidance the response was quote it to them and see what happens!
Now more confused than ever!
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