Before you start

A benefit in kind (BIK) is anything an employee gets that isn’t part of their usual pay but still needs tax, PRSI and USC. You include it on the payslip for the calculations, but the employee doesn’t get the BIK amount in their pay. This is notional pay.

 NOTE: Calculate tax, USC and PRSI on actual pay plus notional pay. The employee only receives actual pay through payroll. They receive the BIK outside payroll, such as private use of a company car. 

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
        NOTE: The Finance Bill 2023 gives some vehicles a temporary €10,000 relief on the Original Market Value (OMV). Go to revenue.ie to read about the Car BIK taxation changes. 
     • Medical Insurance
     • Staff Housing
     • Other
   • Pay as Nett: Select this checkbox to pay the tax, PRSI and USC on the BIK for your employee
   • Universal Social Charge: Select this checkbox if the payment is subject to USC
   • Include in pension calculation: Select this checkbox if the payment is subject to pension calculation
   • Apply Pension Related Deduction: Select this checkbox if the payment is subject to PRD
   • Factor: Ignore this option
   • Multiply by the number of holiday periods: Select this checkbox to adjust the value based on the holiday periods on the timesheet automatically
   • Note: This option only appears in weekly and fortnightly payrolls
   • Formula: Ignore this option
3. Select Save, then select Close.

You can now assign a BIK payment to an employee.