Before you start

A benefit in kind (BIK) is a non-cash benefit, such as private use of a company car or medical insurance.

Sage 50 Payroll Ireland includes the BIK on the payslip to calculate PAYE, PRSI, and USC. The employee doesn't receive the BIK amount through payroll.

Set up a BIK payment

1. Go to Company/Payroll, then select Payments.
2. Select New, then enter the details:
   • Title: Enter the payment name
   • Type: Select Benefit In Kind
   • BIK Type: Choose one of the following:
     • Company Car
       
     • Medical Insurance
     • Staff Housing
     • Other
   • Pay as Nett: Select this to pay tax, PRSI and USC on behalf of your employee
   • Universal Social Charge: Select this if the payment is subject to USC
   • Include in pension calculation: Select this if the payment is subject to pension calculation
   • Apply Pension Related Deduction: Select this if the payment is subject to PRD
   • Factor: Leave unchanged 
   • Multiply by the number of holiday periods: Select this to adjust the payment automatically based on holiday periods
   • Note: This option only appears in weekly and fortnightly payrolls
   • Formula: Leave unchanged 
3. Select Save, then Close.

You can now assign a BIK payment to an employee.