Professional Documents
Culture Documents
(also known as
c c
c) is a term used to refer to the inclusion of fringe
benefits in the remuneration package of an employee, in exchange for giving up part of their monetary
salary.
[edit]Salary sacrifice in UK
This is commonly used to provide an employee with benefits such as pension contributions, childcare
vouchers, annual leave, etc in return for the employee agreeing to a reduction of their contractual
salary.[1] This is a contractual arrangement between the employer and the employee, and provided it is
correctly structured the tax authorities should accept it as a valid arrangement. It is potentially of benefit to
both parties as it saves them both NI contributions while having the potential to save the employee
income tax at the same time.
Salary sacrifice can be extended to any range of benefits and in 2008 is becoming increasingly popular in
the public sector as well as for transport related benefits e.g. Cycles, Bus Travel and Low CO2emission
cars. Salary sacrifice is also commonly used to fund the introduction of Flexible Benefit Plans in the UK.
Legislation introduced in the 2008 budget by Australian Prime Minister Kevin Rudd, with immediate effect
from May 13 2008, effectively closed a loophole in taxation law which had allowed high-salaried
individuals to get a laptop computer almost for nothing. By purchasing a notebook via salary sacrifice,
buyers would not pay tax on that part of their income, a saving of up to 45% for workers in the top tax
bracket. Such PCs were also exempt from fringe benefits tax (FBT), which is paid by the employer on
non-cash benefits which accrue to employees, so neither side came out worse from the deal.
Individuals could also then depreciate the machine (usually over a three-year period), scoring further
deductions on their taxable income each year. If you sold the PC as second-hand at the end of that
period, it might even prove possible to make a profit on the deal.That rule had been in place since 1995,
but everything changed with the May 2008 announcement, which eliminated the double-dipping option.
While you can still purchase a PC (or other technology items including PDAs) under salary sacrifice rules,
they are however subject to full FBT liability and you can¶t then additionally claim the depreciation on
those items against your personal income. Only one level of tax saving will be allowed.
r c
(HRD) is a framework for the
expansion of human capital within an organisation. Human Resources
Development is a combination of Training and Education that ensures
the continual improvement and growth of both the individual and the
organisation. Adam Smith states, ³The capacities of individuals
depended on their access to education´. (Kelly, 2001).
Human Resources Development is the medium that drives the process
between training and learning. Human Resources Development is not a
defined object, but a series of organized processes, ³with a specific
learning objective´ (Nadler,1984) Human Resources Development is the
structure that allows for individual development, potentially satisfying the
organisation¶s goals. The development of the individual will benefit both
the individual and the organisation. The Human Resources Development
framework views employees, as an asset to the enterprise whose value
will be enhanced by development, ³Its primary focus is on growth and
employee development«it emphasises developing individual potential
and skills´ (Elwood, Holton and Trott 1996) Human Resources
Development can be in-room group training, tertiary or vocational
courses or mentoring and coaching by senior employees with the aim for
a desired outcome that will develop the individual¶s performance. An
apprentice will step through the development process to become a
tradesman in their field as will a white-collar trainee to become a
professional in their field. Training will allow the individual to complete a
task within their field today Gutteridge and Hutcheson maintain that,
³Training provides, maintains and enhances skills to perform the job´
(Nadler 1984) Education and training will develop the individual to
become a tradesman or a professional in the future. A successful
Human Resources Development program will prepare the individual to
undertake a higher level of work, ³organised learning over a given period
of time, to provide the possibility of performance change´ (Nadler 1984).
Human Resources Development is the framework that focuses on the
organisations competencies at the first stage, training, and then
developing the employee, through education, to satisfy the organisations
long-term needs and the individuals¶ career goals and employee value to
their present and future employers. Human Resources Development can
be defined simply as developing the most important section of any
business its human resource by, ³attaining or upgrading the skills and
attitudes of employees at all levels in order to maximise the
effectiveness of the enterprise´ (Kelly 2001). The people within an
organization are its human resource. Human Resources Development
from a business perspective is not entirely focused on the individual¶s
growth and development, ³development occurs to enhance the
organization's value, not solely for individual improvement. Individual
education and development is a tool and a means to an end, not the end
goal itself´. (Elwood F. Holton II, James W. TrottJr).
November 2005
Performance Appraisal Evaluation:
Report of Findings and
Recommendations