Employee Rewards and Benefits News
Mercer: Companies must prepare for Finance Act in April
The Finance Act comes along in April 2010 and will change the perspective of many companies in regards to employee reward for employees.
Hannah Perera, a principal in Mercer's Human Capital business, explained that the impact that the Finance Act will have on executive pay, employee reward and motivation has not been appreciated by bosses around the country.
She asserted that the impact on the unprepared will be huge and the loss of one senior executive to a rival company overseas could have "severe implications".
As a result, Ms Perera said that businesses need to carry out several measures in advance of the law coming into place, when discretionary banker bonuses of over £25,000 will be subject to a one-off 50 per cent tax.
Adopting tactical moves such as bringing forward bonus payments and improving communications is recommended.
Adding that complacency over the issue could brings risks, Ms Perera concluded: "The value of bonuses, equity awards and income from other investments or property rentals can all have an impact. Implementing a few tactical steps will help avoid unnecessary surprises."
Mercer is one of the world's leading global providers of consulting, outsourcing and investment services and has 18,000 employees in more than 40 countries.
Posted by Elizabeth Mewes
