You can process a Small Benefit Exemption in Time and Pay to report it to Revenue through Enhanced Reporting. A Small Benefit Exemption isn't a cash payment. When you record it, add a matching net deduction so the amount doesn’t appear in the employee’s net pay. Only employees who receive an expense payment appear on the Enhanced Reporting Submission screen.

Watch the video

Join Duncan as he walks you through small benefit exemptions. The video runs for approximately seven minutes.

Create the expense payment

1. Go to Company/Payroll, then select Payments.
2. Select New, then enter a title such as SmlBenEx.
3. From Type, choose Expenses.
4. From Enhanced Reporting Category, select Small Benefit.
5. Select Save.

Create the net deduction

1. Go to Company/Payroll, then select Deductions.
2. Select New, then enter a title such as SmlBenEx.
3. From Type, choose Nett (After Tax, PRSI and USC).
4. From Sub-type, select Standard.
5. Select Save.

Process the small benefit

1. Go to Enter Time and Pay, select Sequential, then choose Continue.
2. For the employee, enter the value in the Hrs/Val column for the SmlBenEx payment.
3. Enter the same value in the E’e Value column for the deduction.
4. Select Save.
5. Process payroll and complete your Enhanced Reporting Submission as normal.

Record a Small Benefit Exemption when you use Net to Gross

If the employee receives a Net to Gross payment, the matching deduction reduces the employee’s net pay. To keep the take-home pay correct, you’ll increase the Net to Gross value by the same amount as the Small Benefit Exemption.

1. Enter the Small Benefit payment value.
2. Enter the matching net deduction.
3. Increase the value of the Net to Gross payment by the same amount.

Sage 50 Payroll Ireland calculates the correct gross, keeps the employee’s net pay at the agreed level, and records the exemption for Enhanced Reporting.