Benefits-in-kind. 4. How do I add as employee arranged?
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"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:
- First, select the person who's getting the employee arranged benefit-in-kind, on: MenuPeople
- Next, go to: PayPay settings
- And scroll down to the "Repeat payables ... personal" heading.
- Then tap: New repeat payable
- Next, select: Benefit-in-kind
- Next, type in a Description of the benefit-in-kind.
- Select the time frame for the: Amount type
- And then type in the: Amount
- Next, change "Arranged by" to: "Employee"
- Then scroll down and tap the "Advanced" heading.
- 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
- Then tap: Save
- Now, to see how it shows up on the person's payslip, hover your mouse over the repeat payable, and tap the "See on payslip" button:
- You'll now see an amount showing under: "Benefits-in-kind ... employee arranged"
- 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"
- 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:
- About a "Benefits-in-kind ... company arranged", watch the video on: Company arranged benefit
And that's it! That's everything you need to know about adding an employee arranged benefit-in-kind.
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