Cash v Benefit In Kind during maternity: myth/fact?
At a recent CIPP National Forum held at Ceridian’s office in Glasgow, Simon Parsons gave a presentation surrounding the Myths of Payroll.
This month we’ve pulled out the myths and facts relating to Cash v Benefit In Kind (BIK) during maternity. Next month we’ll look at the common myths relating to Auto-Enrolment.
Myth or fact?
Employees in receipt of Car Allowance must also receive this benefit during maternity leave.
Employees are not statutory entitled to any cash benefits during maternity leave. The Car Allowance will have been included in the average pay calculations.
Salary Sacrifice arranged non-cash BIKs can be stopped during maternity.
Employers must continue to provide all non-cash BIKs during maternity leave (52 weeks).
Employer pension contributions are now due for all of maternity leave.
Employer pension contributions are due as if the employee were working normally during all periods of paid maternity leave (generally 39 weeks), or for the first 26 weeks if there is no maternity pay.
Are there any other payroll myths out there that you think need bursting?
Put your questions to Simon Parsons using the comments area below.