Skip to content
logo Knowledgebase

Benefit in kind (BIK) rollover

Created on  | Last modified on 


This guide explains how to process a BIK rollover in Sage Payroll.


If an employee can't pay the tax, pay related social insurance (PRSI) or universal social charge (USC) on a benefit in kind (BIK) in a particular pay period, you must pay it on their behalf.

It's your responsibility to recoup the amount during the course of the tax year. To do this, you should set up a reducing balance deduction and deduct the amount gradually from the employee's pay over an agreed time-frame.

If you don't recoup the full amount by 31st March of the following tax year, the outstanding amount becomes a BIK in the next pay period. This amount is generally called a BIK rollover or BIK shortfall transfer.

Let's take a look at how to do this.


To set up BIK rollover payment 

  1. From the menu bar Company/Payroll then click Company Details.
  2. Click BIK/SSP tab.
  3. Under the BIK Tax/PRSI Shortfall Transfer section, select the Enable BIK Shortfall Transfers check box.
  4. Complete the following information:
    From DeductionChoose the deduction you used to recoup the unpaid BIK tax, PRSI and USC.
    To BIK Payment

    Choose the gross BIK payment.

     NOTE: This is the payment to which the outstanding amount transfers it's value to. 

    Reminder in PeriodIf you want to receive an on-screen reminder when you set the pay period that the BIK shortfall transfer occurs in, choose the relevant period. Alternately, if you don't want an on-screen reminder to appear, choose <none>.
    Restrict To Period Selected Above Select this check box.
  5. Click OK.

To Process a BIK rollover payment 

NOTE: Before you proceed any further, you should take a backup of your payroll data.

  1. From the menu bar, click Processing then click Time and Pay. If prompted to retrieve RPNs for your employees, click No.
  2. Select the relevant entry mode then click Continue.
  3. Use the employee finder button   and select the relevant employee.
  4. Click Transfer Balance to BIK.
    NOTE: If this button is disabled/greyed out you’ll need to activate it within Company Details then click the BIK/SSP tab. To do this, repeat steps 1-3 in this section then clear the Restrict To Period Selected Above check box and click OK. 
  5. Review the settings here and make any necessary changes then click OK.

    TIP: The balance on the selected deduction reduces to zero, and the selected BIK payment increases by the amount of the balance.

  6. Enter the employee's pay details as normal and click Save.
  7. To close the Time and Pay window click Cancel.