An employee’s salary sacrifice agreement officially begins on the day their car is delivered, as outlined in their signed Salary Sacrifice Agreement. However, payment timelines for the company and employee differ slightly to ensure smooth payroll processing.
The company begins paying the car provider in the month the car is delivered.
For example: If a car is delivered on 21st February, the company will be invoiced by the car provider for February, regardless of the delivery date within the month.
These charges will appear in your regular monthly reports, which include details for all employees participating in the scheme to support accurate payroll and accounting.
Employee Salary Sacrifice Deductions
An employee's salary sacrifice begins in the month following delivery.
This delay allows payroll teams enough time to process the deduction. For instance:
If a car is delivered on 21st February, the first salary sacrifice deduction will occur in the March payroll.
The cost of the charger installation is spread over the first 12 months
The cost of the charger installation is included in the salary sacrifice schedule over the first 12 months. This makes salary sacrifice in the first 12 months, higher than in the remaining months, for employees on a Flat Salary Sacrifice Schedule.