General Benefit In Kinds (2627+)

Setting up General Benefit in Kind

As of 2627 onwards you can now enter the BIK start and end date, and Qtac will calculate the pro rata'd amount.  

To create the benefit you need to add it into the employee maintenance window on the tab for 'Benefits In Kind'.

Once you have selected ‘Add New’ you will be need to select the type of benefit select 'All Others'

To select a benefit from the drop down menu. The letters that show on the left hand side of the name of the benefit show the category that the benefit belongs to. You should use any documents that you have to decide which benefit you need to use.

Amount

This is usually the annual amount that the benefit will be. The software will divide this value among the pay periods for that employee when you open and pay.

Amount made good

This is the value that the employee will be contributing towards the benefit. The employee will contribute towards the original cost of the benefit so that the tax that is being deducted is reduced on their pay.

For example: A company car is bought, the company pays £10,000 and the employee pays £5,000. When the benefit is payrolled the employee will only pay tax on the £10,000 because they contributed the £5000 themselves.

Pro Rata Benefit or Use Values Entered

Once you have entered the BIK 'Type', 'Cost' and 'Amount made good' click next.

You will then be asked if you would like to 'Pro Rata' the benefit or 'Use Values Entered'

You will then need to specify the BIK start and end date (assuming you are Pro Rata'd)

Qtac will then display the calculated 'Gross Amount' along with the corresponding 'Amount Made Good' based on the pro‑rated period.

Click 'Save' and you are done!

A little bit about us...

Qtac, a recognised payroll solutions provider in the UK, has been serving businesses for 30 years. Specializing in both payroll software and outsourced payroll services, Qtac caters to small businesses, large corporations, and payroll bureaux. Our software, recognised by HMRC, streamlines the payroll process, featuring RTI submissions, workplace pensions management, and a cloud-based portal for payslips and employee self-service. This software is supported by top-tier customer assistance, ensuring a smooth payroll experience.

Additionally, Qtac offers tailored ‘white-labelled’ outsourcing services. These services are particularly attractive to accountancy firms, as they save time, reduce stress, and mitigate payroll-related risks. By outsourcing to Qtac, companies can be confident in the knowledge that their payroll needs are being expertly managed.

Qtac's solutions are not just about functionality; they are about building long-lasting relationships with clients, offering them a combination of technology and expertise. Their commitment to adapting to client needs and providing reliable, efficient services has established Qtac as a trusted name in the payroll solutions sector in the UK. In essence, Qtac simplifies and enhances the payroll process for a diverse range of clients, ensuring compliance, efficiency, and customer satisfaction. 

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