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Cycle to Work Scheme

Created on  | Last modified on 

Summary

Set up and process Cycle to Work Scheme deductions in Sage 50 Payroll Ireland.

Resolution

The Cycle to Work Scheme allows employers to provide bicycles and cycling equipment to employees through payroll deductions. Employees receive tax, USC, and PRSI relief on qualifying amounts. Employers also reduce employer PRSI costs.

TIP:

For the latest eligibility rules and scheme requirements, visit revenue.ie.

Current limits

Bicycle type Maximum value Frequency
Cargo and ecargo bikes €3000 Once every four years.
Pedelecs and ebikes €1500 Once every four years.
Other bikes €1250 Once every four years.

Create a Cycle to Work deduction

  1. Go to Company/Payroll, then select Deductions.
  2. Select New.
  3. Complete the deduction details:
    Field Value
    Title Enter a name, for example, Cycle to Work.
    Type Gross.
    Sub-Type Standard.
    Multiply by the number of holiday periods Select this checkbox to adjust the value of the deduction to the number of holiday periods you enter on the employee's timesheet.

    This option is only available in weekly and fortnightly payrolls.

     

      NOTE: This checkbox doesn’t affect employee holidays. 
    Balance Type Reducing balance.
  4. If required, select Multiply by the number of holiday periods.

    NOTE:

    This option adjusts the deduction based on the number of holiday periods entered on the employee's timesheet. It doesn't affect holiday entitlement.

     
  5. Select Save, then Close.

TIP:

If the total deduction exceeds the scheme limit, create an additional net deduction for the excess amount. Sage 50 Payroll Ireland deducts this amount after tax, USC, and PRSI calculations.

Assign the deduction to an employee

  1. Go to Processing, then select Employee Details
  2. Next to Surname, select browse.
  3. Open the employee record, then the Deductions tab.
  4. Locate the Cycle to Work deduction.
  5. Enter the following details:

    Std. E’e Amt Amount to deduct each pay period.
    Balance E’e Total amount to recover from the employee.
  6. Select Save, then Cancel.

The deduction reduces each pay period automatically. Sage 50 Payroll Ireland stops the deduction when the balance reaches zero.

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