When must an agreement to sacrifice salary generally be established for it to be valid?
Answer
Before the salary is earned
For the salary sacrifice arrangement to be valid, the agreement to reduce the gross salary must generally be set up before the salary in question is actually earned.
Related Questions
When must an agreement to sacrifice salary generally be established for it to be valid?What is the primary reason both employers and employees participate in salary sacrifice schemes?What specific financial liability is reduced for the employer due to salary sacrifice?What is the foundational document that salary sacrifice modifies?If an employee earning £40,000 sacrifices £2,000 for a benefit, what is their new gross salary for tax purposes?Which statutory payments might be adversely affected if salary sacrifice lowers an employee's Average Weekly Earnings (AWE)?In the UK context, how are sacrificed amounts treated when applied to pension contributions?What is the common name for salary sacrificing into a retirement fund in Australia?What is a key consideration when comparing the savings of a lifestyle benefit scheme managed by an external provider?For leased assets like vehicles, who usually holds the legal ownership during the term of the salary sacrifice agreement?