Bike to work scheme

Summary

How to record a Bike to Work scheme in Sage Payroll.

Description

Your company can take part in the bike-to-work scheme. You can buy bikes and accessories up to €1000 tax-free for your employees. You can deduct the net cost from their wages over an agreed time frame.

This is very beneficial to your employees.

They receive the full benefit of:

Tax relief
Universal Social Charge (USC) relief
Pay-Related Social Insurance (PRSI) relief

Resolution

Create a bike-to-work deduction

Go to the Settings tab; Select Payments & Deductions.
Select the Deductions tab.
Select Create New Deduction. Complete the following information:

Deduction Category	Select Gross Deductions.
Deduction Type	Select Other Gross Deduction.
Name	Enter a name for the deduction. For example, Bike to work.
Description	Enter some explanatory text to make it clear what the deduction is for.

Click Save.

You’ve now created a bike-to-work deduction and can start processing it in employee pay.

To start deducting bike to work from an employee's pay

When you’re processing employee pay in the Edit Pay window, carry out the following steps:

Select the employee you want to start deducting bike to work from.
Select Add Deduction. Select the bike-to-work deduction.
Enter the amount you want to deduct from the employee in the Rate column.
Continue processing employee pay, and complete the pay run as normal.

In each pay run going forward, the bike-to-work deduction and value appear. If necessary, you can change the deduction amount when you’re processing the employee’s pay.

To stop deducting bike to work from an employee's pay

Once the total amount of the bike to work has been deducted from the employee’s pay, you must stop the deduction. When you’re processing employee pay in the Edit Pay window, carry out the following steps:

Select the relevant employee.
Select the delete button to the left of the bike to work deduction.

TIP:

This doesn’t delete the bike-to-work deduction from your payroll. You can use it for other employees who want to use the scheme.

Continue processing employee pay. Complete the pay run as normal.

Solution Properties

Solution ID: 222001000101737
Last Modified Date: Fri Aug 25 12:18:17 UTC 2023
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