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Benefits-in-kind. 4. How do I add as employee arranged?

Employee arranged benefit2:24

"Benefits-in-kind. 4. How do I add as employee arranged?"

An employee arranged benefit-in-kind, that's paid by the company, is taxed with National Insurance (Class 1) only.

To add an employee arranged benefit-in-kind:

  1. First, select the person who's getting the employee arranged benefit-in-kind, on: MenuPeople
  2. Next, go to: PayPay settings
  3. And scroll down to the "Repeat payables ... personal" heading.
  4. Then tap: New repeat payable
  5. Next, select: Benefit-in-kind
  6. Next, type in a Description of the benefit-in-kind.
  7. Select the time frame for the: Amount type
  8. And then type in the: Amount
  9. Next, change "Arranged by" to: "Employee"
  10. Then scroll down and tap the "Advanced" heading.
  11. If there's a co-pay, or an amount that the person's agreed can be taken off their pay, enter that also in: Employee deducted co-pay
  12. Then tap: Save
  13. Now, to see how it shows up on the person's paystub, hover your mouse over the repeat payable, and tap the "See on paystub" button:
  14. You'll now see an amount showing under: "Benefits-in-kind ... employee arranged"
  15. There may have been a co-pay, or an amount that the person's agreed can be taken off their pay. If so, you'll also see that amount showing as: "Employee deducted co-pay"
  16. And finally, if you hover your mouse over the amounts, you'll see a breakdown of their calculations.

Keep in mind that:

  • As a "Benefits-in-kind ... employee arranged", the benefit is taxed by "National Insurance (Class 1)" only.
  • Which results in the person paying slightly lower taxes, compared to a: "Benefits-in-kind ... company arranged"
  • Also, because it's a benefit-in-kind, there's no change to the person's in-the-hand pay (besides the tax adjustment).

To learn more:

And that's it! That's everything you need to know about adding an employee arranged benefit-in-kind.

Updated: Sun, Jan 21, 2024.

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