"How do I record company provided medical benefits for an employee?"
When your company provides private medical or dental benefits for an employee, it's considered a "Benefit-in-kind". However, some private medical or dental benefits are exempt.
To learn more:
- About which private medical or dental benefits are exempt, go to GOV.UK.
- If the medical benefit you're providing IS EXEMPT, go ahead and provide the benefit tax-free. In other words, there's nothing to set for the employee's pay.
- However, if it's NOT EXEMPT you'll need to add it as a repeating: "Benefit-in-kind"
To add a private medical or dental benefit to an employee's pay, as a repeating "Benefit-in-kind":
- First, select the person who's getting the private medical or dental benefit on: MenuPeople
- To make a new repeat payable, go to: PayPay settings
- And scroll down to the "Repeat payables ... personal" heading.
- Then click: New repeat payable
- Next, select: Benefit-in-kind
- Next, type in a Description of the benefit-in-kind.
- Select the monthly time frame: Amount type
- And then type in the monthly cost: Amount
- By default, "Arranged by" is already set to: "Company"
- Then scroll down and click the "Advanced" heading.
- Optionally, if there's a co-pay, or a monthly amount that the person's agreed can be taken off their pay, enter that also in: Employee deducted co-pay
- Then click: Save
- Then on the repeat payable list, hover your mouse over the repeat payable, and click the "See on paystub" button:
- You'll now see an amount showing under: "Benefits in kind ... company arranged"
- And if you hover your mouse over the amount, you'll see a breakdown of the calculation.
- 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" with its own notes when you hover.
- Then if you click the "Next paystub" circle, you'll see the same amounts repeated on every payday. Including "Benefit-in-kind" and: "Employee deducted co-pay"
- If you later decide you want to remove, or stop the repeating "Benefit-in-kind", click its "Edit" button:
- And finally, you can change any part of it, including changing the "Ends on" date to finish earlier, if required.
Keep in mind that:
- The co-pay amount is automatically set to be deducted from the person's pay.
- The company doesn't have to separately collect the co-pay amount from the person.
- Also, in some cases, the employee has themselves paid for the private medical or dental cost, and is asking the company for a once-only reimbursement.
- To add a once-only "Benefit-in-kind" reimbursement, click: MenuExpense claim, select the person, and click: Once only taxable benefit
To also learn more:
- About when to set "Arranged by" to "Company" or "Employee" for medical benefits, go to GOV.UK.
And that's it! That's all you need to do to add an employee's private medical or dental benefit!