Payroll savings is a staff benefit you can offer to help improve the financial well-being of your staff. Payroll savings encourages your staff to save, and provides them with access to low cost affordable loans.
The scheme is simple to administer – FAIRshare emails a schedule of deductions in advance of your regular payroll date, savings or repayments are deducted from wages via the payroll, confirmation is emailed to FAIRshare, along with one BACS transfer per pay run.
Any amendments/new subscribers come via FAIRshare to minimise the disruption to the payroll office. All forms will be sent to the payroll department at an agreed time via an agreed channel.
Is there a cost?
What’s in it for your company?
Why will employees want it?
Support from the Payroll Industry
In January 2014 the Chartered Institute of Payroll Professionals (CIPP) announced that many UK payroll outsourcers have agreed not to charge processing fees for credit union loan repayments.
Chief executive of CIPP, Lindsay Melvin said: “Our hope is that all employers and payroll providers will collectively support employees in managing their debt by not charging for processing credit union loans through payroll. It would be good if employers were proactive in communicating to staff the advantages of going to a credit union as a viable alternative to a payday loan provider, with a valuable advantage of having a free mechanism to repay their loans and saving to cope with emergencies.”
The CIPP found delinquency rate on loans repaid through the payroll is less than 1% compared to other loan methods where it is nearer 8%. According to the CIPP payroll has so much to offer to assist their organisation with their financial and human capital strategies.
The Economic Secretary to the Treasury, Andrea Leadsom, has encouraged employers & voluntary sector organisations to engage with credit unions to help them provide affordable credit and responsible financial services in their communities. August 2014
If you are interested in finding out more about how to provide this service to your employees please email FAIRshare or call our Member Services Team on 01952 200200.