Get Corporate Financial Advice from Qualified Experts
Over the years the obligations and legislation that employers must adhere to has changed dramatically, with one of the biggest changes looming on the horizon right now in the form of NEST (National Employment Savings Trust) Pensions and how this will affect every employer in the UK.
At Connect Financial Services we prefer to view financial planning for Employers as an opportunity to help the business retain staff, protect their business and personal interests in the business, and where the firm may have profits or surplus liquid assets, to invest for growth or future income. Corporate Financial Advice from Connect Financial Services will assist with these and many other areas.
It is vital that any advice we provide will at the very minimum meet your legal obligations. We believe, however that as the cost of providing employee benefits is considerably cheaper than most employers imagine, it is a great tool to boost staff retention and motivation, thus increasing efficiency and profitability.
The main areas we focus on for employers are as follows:
- Compliance with Changing Legislation
- Group Pensions
- Group Life Cover
- Partnership Protection
- Key Employee Protection
To discuss your obligations as an employer and your options to ensure you avoid teh relevant penalties and fines, please contact us.
Compliance with Changing Legislation
At Connect Financial Services we ensure that we are up-to-date with all relevant legislation and are in a position to help employers meet their obligations, both now and in the future in terms of Employee Benefit packages and indeed all other financial planning areas.
Forward planning in these areas can play a vital role in not only planning your company’s finances, but also to ensure that you are prepared for and meet your obligations by the specified dates to avoid any associated penalties or fines for not doing so.
Furthermore, by planning in advance it is often possible to provide a much simpler and cost effective solution, which can keep the cost to the employer as low as possible.
The key consideration for most employers should be whether they are ready for the introduction of NEST Pensions and do they understand the amount they will have to contribute as well as when they have to begin making these contributions.
Failure to do the above at the correct level and time could result in significant penalties and having to bring the missed payments up-to-date which can be very expensive
Group Pensions allow employers to ‘group’ their employees together and provide a pension scheme that they all have the opportunity to join. Over the coming years there will be a minimum contribution level that employers have to pay for different employees into their pensions and having a group scheme is generally seen as the easiest way for employers to do this.
As well as being easier to manage and to ensure your employees are happy, group schemes having the advantage that your employees see this as a benefit you provide, whereas if you simply leave your employees without a pension and they are registered for use the NEST Scheme that is being offered by the government, research has shown that most employees will see the plan as a state benefit, as opposed to something that you contribute towards.
Group Life Cover
Group Life Cover, or Death in Service as it is often referred to, can be offered to your employees at a fraction of the cost of them getting the same level of cover individually. Although the cost is relatively low, research, has clearly shown that employees of firms that offer benefits like this are typically far more content, motivated and likely to remain with their employer.
Partnership Protection Plans offers protection to the partners of a firm by providing financial support to avoid the ownership of the partners being diluted if a party dies, is ill, or in some cases if a partner looks to sell their share of the firm. When this happens, the product provides funds to ensure remaining partners can afford to buy the shares, to keep the ownership of the firm among themselves.
Key Employee Protection
Key Employee Protection, or Key Man Cover as it is often called provides a financial sum if an employee, partner, or director that is integral to the operation of the firm leaves, dies, or is injured or ill and cannot perform their duties.
Upon the key employee no longer fulfilling their duties at the firm the plan pays out a substantial lump sum to allow the business to survive and prosper whilst they seek to replace the employee or to sell the company.