Make sure families can get help from an EAP in 2021
Make sure families can get help from an EAP in 2021
The full extent of the benefits of EAPs to the UK population is limited by HM Revenue & Customs rules on family access.
While in Canada the services are well-known and promoted for use as ‘Employee and Family Assistance Program (EFAP)’, the usage among family members in the UK is low. EAP providers typically allow family members to use services at no extra cost to the employer. But UK tax rules see an EAP used by family as a taxable benefit.
Find a solution
There are practical ways to make sure family access doers’t come with a tax cost, says Tracey Ward, Head of Business Development and Marketing at Generali UK Employee Benefits.
“Work with your group income protection insurer / standalone EAP provider to assess whether any additional costs are actually incurred through extending access. If not, access may potentially be extended without any liabilities.
“If additional costs apply, consider whether the cost of the EAP could be put in the trivial benefit exemption.
“If the EAP falls foul of the trivial benefit exemption, work with your provider and/or tax adviser to calculate the potential tax liability, which could be met on a grossed-up basis – so that employees do not meet the tax cost – under what is known as a PAYE Settlement Agreement. This puts you in an informed position to decide whether or not it’s worth paying that liability in order to extend mental health support more widely.”
Family first
“Problems at home can be complex and involve relationships and issues across families,” said EAPA UK chair Eugene Farrell. So extending availability of EAP support to a family isn’t just a an additional perk, it’s important in terms of helping to find solutions for the employee. It doesn’t make sense to limit usage because of a tax liability when revenues for HMRC from this are very small – and it only undermines the overall impact of an EAP.
“The reality of this year will be many more people dealing with the fall-out from the pandemic crises, more people looking for help and reassurance around their mental health who will find the NHS isn’t in a position to help.
“Wider access to EAPs will mean fewer cases of people ignoring the warning signs, not talking or asking for help, and a way to avoid mental wellbeing deteriorating, leading to more serious cases for the NHS to take on.”
Head over to our LinkedIn to find out more about help from an EAP in 2021