Bike to work scheme
If your company takes part in the cycle to work scheme, you can purchase bikes and accessories up to 1000 euro tax free for your employees, and deduct the net cost from their wages over an agreed time frame.
This is greatly beneficial to your employees as they receive the full benefit of tax, universal social charge (USC) and pay related social insurance (PRSI) relief on these amounts.
- 1. Go to the Settings tab, then click Payments & Deduction Settings.
- 2. Click the Deductions tab.
- 3. Click Create New Deduction, then complete the following information:
|Deduction Category||Click Gross Deductions.|
|Deduction Type||Click 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.|
- 4. Click Save.
You’ve now created a bike to work deduction and can start processing it in employee pay.
When you’re processing employee pay in the Edit Pay window, carry out the following steps:
- 1. Select the employee you want to start deducting bike to work from.
- 2. Click Add Deduction, then click the bike to work deduction.
- 3. Enter the amount you want to deduct off the employee this pay run in the Rate column.
- 4. Continue processing employee pay, and complete the pay run as normal.
In each subsequent pay run that you process pay for this employee, the bike to work deduction and value automatically appears. If necessary, you can change the deduction amount when you’re processing the 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:
- 1. Select the relevant employee.
- 2. Click the delete button to the left of the bike to work deduction.
This doesn’t delete the bike to work deduction type from your payroll. If another employee wants to avail of the scheme, simply follow the steps covered in the To start deducting bike to work from an employee’s pay section.
- 3. Continue processing employee pay, and complete the pay run as normal.