Information for Employers
Running the scheme
The Salary Exchange will guide you through setting up your BikeScheme providing the tools and compliant documentation needed to communicate, launch and administer the scheme.
This section provides information on the following:
- Funding the scheme, what are my options?
- Communicating the scheme to employees...
- Employee enrolment, how do employees apply?
- Administration, how little is involved?
- Ownership of the bike...
- End of the Scheme, what are the options?
Funding the scheme
The initial purchase of bikes can be funded in two different ways:
Self-funding
This is where the orginisation pays for the bikes as orders are placed or at the end of the enrolment window. This option will reduce the hire cost for employees as there is no interest charge, but will involve an initial capital expenditure. This expenditure will be recovered during the year from the employee’s Salary Sacrifice reductions. Ultimately the scheme is cost neutral but obviously can impact on cash flow.
Third Party Leasing
This is where a lease agreement is set up to fund the cost of the bikes (Salary Exchange can organise this through a panel of funders). The finance cost would be passed on to the employee. The benefit of using a third party leasing provider is there are no upfront costs for the company. Each month the employee Salary Sacrifice reductions equates to the monthly standing order payments with the leasing company.
To view an example of how much an employee would save, please click here.
Communications
Communicating the scheme is vitally important to ensure employees are aware of the benefits of joining the scheme. A selection of posters and marketing material are available to download from the Salary Exchange administration site. This will build staff awareness and promote the launch of the scheme to employees.
Employee Enrolment
The Salary Exchange will set up a bespoke site for employees to log on to (using the company username and password). The site will be customised to the orginisations specific requirements including enrolment dates, eligibility criteria and your company logo.
Employees can enrol in the scheme online or via telephone (if they have no access to a computer). After placing an order the employee will download and sign a Hire Agreement. (An example Hire Agreement can be viewed here») This is a legally binding agreement between the orginisation and the employee. The Hire Agreement is regulated by the Consumer Credit Act and is non cancellable. It gives the orginisation permission to reduce the employee’s pay by the agreed amount, and the right to deduct from final net pay any outstanding amounts from the employee in the event of them leaving the company before the end of the hire period.
Administration
The administration is minimal. The Salary Exchange administration site will allow your orginisation to approve orders and download payroll schedules which can then be uploaded into your orginisations payroll system.
Ownership of the bike
During the Hire Period the bikes and accessories are owned by the originsation. However, employees are the custodians of the bike and are responsible for insuring and maintaining the bike in a good roadworthy condition.
For a great deal on Cycle Assist cover please click here>>
End of scheme
At the end of the hire period the originsation can sell the bikes to the employee for a nominal amount representing the value of the goods at that time. Full details of this can be found on the “end of scheme” page. This is an arrangement that is separate to the scheme itself.
Get Started!
If your company has less than 1000 employees, please click on the “apply now” link to get you started.
You can have a scheme live within a matter of days if you wish, although we suggest you plan a little further ahead to maximise the opportunities to communicate the Salary Exchange message to your staff.
Either way, you are not under any obligation to go ahead with a scheme.
Apply Now