SimplePay has a built-in item to accommodate the special tax and reporting requirements related to salary sacrifices for Bike to Work purchases.
You can read more about Bike to Work purchases and salary sacrifices in the following Help Site articles:
This system item should only be used for salary sacrifices related to Bike to Work purchases, and not the benefit itself. For more information on setting up the company contribution, refer to the Bike to Work article linked above.
To use this system item:
- Go to the employee’s profile.
- Click on Add next to Regular Inputs
- Select Bike to Work – Salary Sacrifice under Deduction.
- In the Regular Repayment field, enter the salary sacrifice amount that should be utilised on each payslip. This is the amount that you wish to recoup on each payslip.
- Click Save.
- Under Payslip Inputs, select Bike to Work – Salary Sacrifice.
- In the Bike / Equipment Purchase field, enter the total value of the purchase that you wish to recoup from employees over time. This is not necessarily the total value of the purchase, as you may only wish to recoup a portion of the total purchase.
- Click Save.
If the salary sacrifice amount for a particular payslip is different from the regular portion, this can be recorded as follows:
- Click on Bike to Work – Salary Sacrifice under Payslip Inputs.
- Enter the amount of the salary sacrifice to be used for this payslip in the Once-off Repayment field.
- Click Save.
Please note: Only the once-off amount will be deducted from gross pay on the payslip and not the regular amount.
You can also process this system item in bulk. For more information about processing payroll in bulk, refer to the following Help Site article: