Difference between revisions of "How do I record benefits in kind?"
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== Summary == | == Summary == | ||
| − | Benefits in Kind and Expenses can be entered through | + | Benefits in Kind and Expenses can be entered through {{PR}}. The amount of tax due will be calculated and deducted from the employee in each Payroll Period. |
== More Information == | == More Information == | ||
| − | Before using this option you will need to create | + | Before using this option you will need to create records in the Payment Defaults to allow the system to record Benefits in Kind. |
=== Configuration === | === Configuration === | ||
| − | Go to {{Menu|{{PR}}|Payroll Maintenance|Payroll Settings|Company Parameters|Payment Defaults}} | + | Go to {{Menu|{{PR}}|Payroll Maintenance|Payroll Settings|Company Parameters|Payment Defaults}}. |
* Move down to the next free line in the {{DataPrompt|Description}} column. | * Move down to the next free line in the {{DataPrompt|Description}} column. | ||
| − | * Enter a description e.g. {{DataValue|Benefits-Cars}} or {{DataValue|Benefits-Meds}} (up to a maximum of 15 characters). | + | * Enter a description, e.g. {{DataValue|Benefits-Cars}} or {{DataValue|Benefits-Meds}} (up to a maximum of 15 characters). |
* Use the {{KeyPress|Tab}} key to move across the columns to the {{DataPrompt|Benefit}} column. | * Use the {{KeyPress|Tab}} key to move across the columns to the {{DataPrompt|Benefit}} column. | ||
* Press {{KeyPress|C-F1}}. | * Press {{KeyPress|C-F1}}. | ||
| − | * To add a new Benefit Type enter a 3 character code e.g. 001 | + | * To add a new Benefit Type, enter a 3 character code for the benefit, e.g. 001. |
| − | ** If records already exist either select the required type or click {{Button|Add}} to create a new type. | + | ** If records already exist, either select the required type or click {{Button|Add}} to create a new type. |
| − | ** Enter a description e.g. Company Cars. | + | ** Enter a description, e.g. Company Cars. |
** Click {{Button|Done}}. | ** Click {{Button|Done}}. | ||
* Repeat to add any other types of Benefits you intend to put through the payroll. | * Repeat to add any other types of Benefits you intend to put through the payroll. | ||
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Wait until you are in the first period in which to apply the benefit. | Wait until you are in the first period in which to apply the benefit. | ||
| − | Go to {{Menu|{{PR}}|Run Payroll Period}} | + | Go to {{Menu|{{PR}}|Run Payroll Period}}. |
* Enter {{KeyPress|Y}} against the frequency the employee falls into and click {{Button|OK}}. | * Enter {{KeyPress|Y}} against the frequency the employee falls into and click {{Button|OK}}. | ||
* Using the arrow keys, move down the list of employees until the appropriate employee is highlighted. | * Using the arrow keys, move down the list of employees until the appropriate employee is highlighted. | ||
* Click {{Button|Benefits}} or press {{KeyPress|S-F9}}. | * Click {{Button|Benefits}} or press {{KeyPress|S-F9}}. | ||
| − | ** If the employee has existing records click {{Button|Add}} to create a new record. | + | ** If the employee has existing records, click {{Button|Add}} to create a new record. |
* Enter the code for the Benefit {{DataPrompt|Type}} or press {{KeyPress|C-F1}} and click {{Button|List}} to select the relevant type. | * Enter the code for the Benefit {{DataPrompt|Type}} or press {{KeyPress|C-F1}} and click {{Button|List}} to select the relevant type. | ||
| − | * Enter a suitable {{DataPrompt|Reference}} for this record e.g. the Registration Number of the company vehicle or the type of Medical benefit such as Life Insurance. | + | * Enter a suitable {{DataPrompt|Reference}} for this record, e.g. the Registration Number of the company vehicle or the type of Medical benefit such as Life Insurance. |
| − | * At {{DataPrompt|Start Date}} enter the date the benefit started. | + | * At {{DataPrompt|Start Date}}, enter the date the benefit started. |
* You may enter an {{DataPrompt|End Date}} if known but you may leave it open ended by pressing {{KeyPress|Tab}} to move through the date field without completing it. | * You may enter an {{DataPrompt|End Date}} if known but you may leave it open ended by pressing {{KeyPress|Tab}} to move through the date field without completing it. | ||
* Enter the Total Annual Cash {{DataPrompt|Equivalent amount}} for the benefit. The Tax per period will be calculated based on this amount. | * Enter the Total Annual Cash {{DataPrompt|Equivalent amount}} for the benefit. The Tax per period will be calculated based on this amount. | ||
| − | * If you need to record additional notes click the {{Tab|Notes}} tab. | + | * If you need to record additional notes, click the {{Tab|Notes}} tab. |
* Click {{Button|Done}} and {{Button|Accept}} the record. | * Click {{Button|Done}} and {{Button|Accept}} the record. | ||
| − | You will see a column for each type of benefit, as created in the Configuration section above.This column will show the amount per period on which Tax will be calculated. | + | You will see a column for each type of benefit, as created in the Configuration section above. This column will show the amount per period on which Tax will be calculated. |
| − | {{Note|text=The value | + | {{Note|text=The value shown will NOT be added to or deducted from the employee's Nett Pay. It is included in the Gross Pay figure to allow the correct tax to be calculated.}} |
=== Amending a record === | === Amending a record === | ||
To amend or cancel a benefit: | To amend or cancel a benefit: | ||
| − | Go to {{Menu|{{PR}}|Run Payroll Period}} | + | Go to {{Menu|{{PR}}|Run Payroll Period}}. |
* Enter {{KeyPress|Y}} against the frequency the employee falls into and click {{Button|OK}}. | * Enter {{KeyPress|Y}} against the frequency the employee falls into and click {{Button|OK}}. | ||
* Using the arrow keys, move down the list of employees until the appropriate employee is highlighted. | * Using the arrow keys, move down the list of employees until the appropriate employee is highlighted. | ||
* Click {{Button|Benefits}} or press {{KeyPress|S-F9}}. | * Click {{Button|Benefits}} or press {{KeyPress|S-F9}}. | ||
* Select the record to amend and click {{Button|Edit}}. | * Select the record to amend and click {{Button|Edit}}. | ||
| − | ** To amend the | + | ** To amend the Description, simply overtype it. |
| − | ** To enter an end date move down to the {{DataPrompt|End Date}} field. Once the date is reached the tax will no longer be deducted on the benefit. | + | ** To enter an end date, move down to the {{DataPrompt|End Date}} field. Once the date is reached, the tax will no longer be deducted on the benefit. |
| − | ** If you need to record additional notes click the {{Tab|Notes}} tab. | + | ** If you need to record additional notes, click the {{Tab|Notes}} tab. |
* Click {{Button|Done}} and {{Button|Accept}} the record. | * Click {{Button|Done}} and {{Button|Accept}} the record. | ||
=== Additional Records === | === Additional Records === | ||
| − | To add records for an employee follow the steps in the Application section e.g. when an employee changes their company vehicle. | + | To add records for an employee, follow the steps in the Application section e.g. when an employee changes their company vehicle. |
== See also == | == See also == | ||
Revision as of 06:17, 8 June 2017
Contents
Summary
Benefits in Kind and Expenses can be entered through Payroll. The amount of tax due will be calculated and deducted from the employee in each Payroll Period.
More Information
Before using this option you will need to create records in the Payment Defaults to allow the system to record Benefits in Kind.
Configuration
Go to " Payroll Payroll Maintenance Payroll Settings Company Parameters Payment Defaults".
- Move down to the next free line in the "Description" column.
- Enter a description, e.g. 'Benefits-Cars' or 'Benefits-Meds' (up to a maximum of 15 characters).
- Use the <Tab> key to move across the columns to the "Benefit" column.
- Press <Ctrl+F1>.
- To add a new Benefit Type, enter a 3 character code for the benefit, e.g. 001.
- If records already exist, either select the required type or click [Add] to create a new type.
- Enter a description, e.g. Company Cars.
- Click [Done].
- Repeat to add any other types of Benefits you intend to put through the payroll.
- Press <Esc> and exit back to the Payroll main menu.
Application
Wait until you are in the first period in which to apply the benefit.
Go to " Payroll Run Payroll Period".
- Enter <Y> against the frequency the employee falls into and click [OK].
- Using the arrow keys, move down the list of employees until the appropriate employee is highlighted.
- Click [Benefits] or press <Shift+F9>.
- If the employee has existing records, click [Add] to create a new record.
- Enter the code for the Benefit "Type" or press <Ctrl+F1> and click [List] to select the relevant type.
- Enter a suitable "Reference" for this record, e.g. the Registration Number of the company vehicle or the type of Medical benefit such as Life Insurance.
- At "Start Date", enter the date the benefit started.
- You may enter an "End Date" if known but you may leave it open ended by pressing <Tab> to move through the date field without completing it.
- Enter the Total Annual Cash "Equivalent amount" for the benefit. The Tax per period will be calculated based on this amount.
- If you need to record additional notes, click the [Notes] tab.
- Click [Done] and [Accept] the record.
You will see a column for each type of benefit, as created in the Configuration section above. This column will show the amount per period on which Tax will be calculated.
 | The value shown will NOT be added to or deducted from the employee's Nett Pay. It is included in the Gross Pay figure to allow the correct tax to be calculated. |
Amending a record
To amend or cancel a benefit: Go to " Payroll Run Payroll Period".
- Enter <Y> against the frequency the employee falls into and click [OK].
- Using the arrow keys, move down the list of employees until the appropriate employee is highlighted.
- Click [Benefits] or press <Shift+F9>.
- Select the record to amend and click [Edit].
- To amend the Description, simply overtype it.
- To enter an end date, move down to the "End Date" field. Once the date is reached, the tax will no longer be deducted on the benefit.
- If you need to record additional notes, click the [Notes] tab.
- Click [Done] and [Accept] the record.
Additional Records
To add records for an employee, follow the steps in the Application section e.g. when an employee changes their company vehicle.
See also
