Charities - why exlude pension costs from emoluments?

Charities - why exlude pension costs from...

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I'm looking at a charity but I think this is true for all companies.

Section 236 for the SORP states that:

"Where a charity is subject to a statutory audit then the notes should also show the number of employees whose emoluments for the year (including taxable benefits in kind but not employer pension costs) fell within each band of £10,000 from £60,000 upwards. Bands in which no employee’s emoluments fell should not be listed."

I'm wondering why employers pension costs would be excluded? Say someone earns 100k but does a salary sacrifice scheme to get 70k gross and 30k of employers pension contributions. The accounts would say that there is an employee earning 70k and not 100k. Sounds a lot less but he's still effectively earning 100k (in my mind anyway).

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By WhichTyler
20th Jul 2010 11:12

Read on...

para 237 then says that 'contributions in the year for the provision of defined contribution schemes' should also be disclosed.

basically it follows Companies Act disclosure, which has the same split.

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By ajnmx
02nd Apr 2011 22:21

Sorry to resurrect this!

 ...but re-reading the SORP and the reply above I'm still unsure.

Section 236 of the SORP seems pretty clear in that if pay not including employer's pension contributions is less than 60k then nothing needs disclosing.

Section 237 begins "In addition the following pension details should be disclosed in total for higher paid staff as defined in paragraph 236:". But as above there's nothing to disclose per section 236 so therefore there's nothing to disclose per section 237 either. Or am I missing something here?

The scenario I'm actually interested in is if an employee's agreed base salary is 70k. He then does a salary sacrifice for 15k making his disclosable salary 55k. Less than 60k - so why would anything need to go in the notes to the accounts?

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