Question 1

What does it cost employers to sign up to YellowNest?

Accepted Answer

YellowNest is designed to be completely cost-neutral to employers as the benefit is funded through the employer’s National Insurance savings (a natural result of salary exchange).

Question 2

Is there a minimum sign up requirement or minimum headcount?

Accepted Answer

YellowNest endeavours to support all types of companies across the UK to help as many working parents as we can. Therefore, there is no minimum headcount required to partner with us as an employer, nor is there a minimum number of employees needed to sign up – we can even lay dormant from time to time at zero financial risk to your business.

Question 3

I’m interested in working with YellowNest, how do I sign up as an employer?

Accepted Answer

All you need to do is complete our T&Cs to start offering our benefit out to your employees. Please complete this form (https://www.yellownest.co.uk/newemployercontact)to get started.

Question 4

Will YellowNest support employers through the launch/implementation phase?

Accepted Answer

Absolutely! We want to maximise your employees’ engagement with our benefit, but we also want to keep admin to a minimum for your People/Ops/Finance teams. Once you’ve agreed to our T&Cs, we’ll lead on the launch/implementation phase (e.g. running parent webinars, sharing digital marketing materials, supporting with policy updates, etc.) to make this as seamless as possible.

Question 5

How does the YellowNest benefit work alongside parental leave?

Accepted Answer

As long as the employee is still earning more than the National Minimum Wage, salary exchange can continue. Once Statutory Pay begins and causes the employee’s salary to fall below National Minimum Wage, the employee will have to be removed from the benefit. Upon the employee’s return to work, they can start a new salary exchange agreement.

Question 6

How might salary exchange affect an employee’s pension contributions?

Accepted Answer

Participating employees’ pension contributions may decrease during salary exchange arrangements as a result of reduced gross pay, of which pension calculations are based, but this is normally not the case. It all depends on the employer’s pension policy.

Question 7

Can employees purchase childcare vouchers whilst salary exchanging via YellowNest?

Accepted Answer

No, an employee cannot enter into two 'childcare' salary exchange benefits simultaneously, due to the potential of receiving double taxation relief. However, in the case of a two parent family, one parent could take childcare vouchers through their employer, and the other could use the YellowNest Workplace Nursery benefit through their employer.

Question 8

What happens if an employee leaves their employment partway through their salary exchange agreement with YellowNest?

Accepted Answer

The Salary Exchange Agreement will be terminated, and the employee will resume responsibility for settling their nursery fees directly with their childcare provider however they wish to do so outside of Salary Exchange.

Question 9

Does the National Minimum Wage (NMW) threshold apply to directors?

Accepted Answer

If the director is also an employee with a contract (written or implied), they must still receive at least the NMW after salary exchanging their childcare fees. But a director acting solely as an office holder, without an employment contract, is not subject to the NMW threshold and can therefore salary exchange below the NMW (i.e. up to 100% of their salary received from their company).

Save your employees thousands in childcare costs.

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