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Benefits in kind

 

One time benefit in kind3:10

When your company pays for a benefit an employee uses outside of work, this is considered a "Benefit in kind", and increases the employee's tax, but doesn't increase the employee's in-the-hand pay. 

In this video, we'll talk about how to add a one time "Benefit in kind" to an employee's paystub. Instead if you want a "Benefit in kind" that's added to the employee's paystub every payday, watch our video about creating a Repeating benefit in kind. 

To get started: 

  1. Click through to: > Menu > Expense claim 
  2. Choose the person who's getting this "Benefit in kind". In this example we'll choose Sonia. 
  3. Scroll down, and choose "Benefit in kind". 
  4. In Amount enter how much this "Benefit in kind" is worth. Here we'll enter £100. 
  5. When you're finished, click: Next 
  6. Here you can type a short description of this "Benefit in kind", but for now we'll click: Skip 
  7. You can also attach an image, like a receipt, but we're going to skip this part too. 
  8. Review what you've entered, then when you're ready, click: Save 

And that's it! This new "Benefit in kind" will now be added to Sonia's next unpaid paystub. 

To see this "Benefit in kind" on Sonia's paystub: 

  1. Scroll down to: Amount 
  2. Then click the See on paystub button. 
  3. Now you'll see a new "Benefit in kind" added under "Benefits in kind ... company arranged". 

And that's how you know your "Benefit in kind" was created successfully! 

And that's it! That's how you set up a one time "Benefit in kind" for an employee! 

"My employee's agreed to have money automatically deducted from their paystub to use a company benefit, outside of work. How do I set up the deduction?" 

  1. In the Employee deducted field, enter how much the employee's agreed will be deducted, so they can use this benefit outside of work. In this example we'll enter £20. 
  2. Just above, in the Amount field we'll enter the total amount of £100. 
  3. Finally, click Save, and that's it! The deduction has been set up. 

To see this deduction on Sonia's paystub: 

  1. Click the See on paystub button. 
  2. You'll now see the £20 from before, taken off Sonia's paystub. 
  3. If you scroll up to "Benefits in kind ... company arranged", you'll see the "Benefit in kind" has been reduced to £80 instead of the £100 that we entered. 
  4. This is because the employee's deduction from their paystub reduced the "Benefit in kind" by £20. 

And that's it! That's all you need to do for deductions so employees can use a company benefit outside of work. 

Updated: Sat, Feb 5, 2022. Keywords: single. Headings: `How can I add a benefit in kind to an employee?`
 

Repeating benefit in kind3:29

When your company pays for a benefit an employee uses outside of work, this is considered a "Benefit in kind", and increases the employee's tax, but doesn't increase the employee's in-the-hand pay. 

In this video, we'll talk about how to set up a repeating "Benefit in kind" that's added to the employee's paystub every payday. 

Instead if you want a one time "Benefit in kind", watch our video about adding a One time benefit in kind. 

To get started: 

  1. Click:   Menu > People 
  2. Then choose the person who's getting this "Benefit in kind". 
  3. In this example we'll choose Sonia. 
  4. To make a new repeat payable, go to: Pay > Pay settings 
  5. Scroll down to "Repeat payables ... personal". 
  6. Then, click the add button. 
  7. Choose "Benefit in kind". 
  8. In Description you can type a short description of what this "Benefit in kind" is for. 
  9. Next, in Amount enter how much this benefit is worth per year. 
  10. In this example we'll enter £1,200 for the year. 
  11. Finally, click Save, and that's it! Now a "Benefit in kind" will show up on Sonia's paystub every payday. 

To see this "Benefit in kind" on Sonia's paystub: 

  1. Click the See on paystub button. 
  2. You'll now see £100 added to Sonia's paystub under "Benefits in kind ... company arranged". 

To see how this is calculated: 

  1. Hover your mouse over the row. 
  2. For this example, the £100 is calculated as £1,200 per year, divided by twelve paydays in the year, equals £100 per payday. 

And that's it! That's how you set up a repeating "Benefit in kind" for an employee! 

"My employee's agreed to have money automatically deducted from their paystub to use a company benefit, outside of work. How do I set up the deduction?" 

  1. In the Employee deducted field, enter how much the employee's agreed will be deducted, so they can use this benefit outside of work. In this example we'll enter £20. 
  2. Just above, in the Amount field we'll enter the total amount of £100. 
  3. Finally, click Save, and that's it! The deduction has been set up. 

To see this deduction on Sonia's paystub: 

  1. Click the See on paystub button. 
  2. You'll now see the £20 from before, taken off Sonia's paystub. 
  3. If you scroll up to "Benefits in kind ... company arranged", you'll see the "Benefit in kind" has been reduced to £80 instead of the £100 that we entered. 
  4. This is because the employee's deduction from their paystub reduced the "Benefit in kind" by £20. 

And that's it! That's all you need to do for deductions so employees can use a company benefit outside of work. 

Updated: Sat, Feb 5, 2022. Headings: `How do I add a recurring benefit in kind?`
 

Paystub deductions for private use1:13

"My employee's agreed to have money automatically deducted from their paystub to use a company benefit, outside of work. How do I set up the deduction?" 

  1. In the Employee deducted field, enter how much the employee's agreed will be deducted, so they can use this benefit outside of work. In this example we'll enter £20. 
  2. Just above, in the Amount field we'll enter the total amount of £100. 
  3. Finally, click Save, and that's it! The deduction has been set up. 

To see this deduction on Sonia's paystub: 

  1. Click the See on paystub button. 
  2. You'll now see the £20 from before, taken off Sonia's paystub. 
  3. If you scroll up to "Benefits in kind ... company arranged", you'll see the "Benefit in kind" has been reduced to £80 instead of the £100 that we entered. 
  4. This is because the employee's deduction from their paystub reduced the "Benefit in kind" by £20. 

And that's it! That's all you need to do for deductions so employees can use a company benefit outside of work. 

Updated: Sat, Feb 5, 2022. Keywords: I, K, L, personal. Headings: `Can private use payments for a benefit be deducted automatically?`

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