Bike to Work Scheme
To setup the 'Bike to Work' scheme in Collsoft payroll, the first thing you need to do is create a Non-Taxable Deduction.
To do this, open the company details screen and select the Deductions Tab. Rename a deduction Heading, one that is not in use already. Rename to 'Bike to Work' and tick the TAX (PAYE) Allowable, PRSI Employee and Employer Allowable & USC Allowable columns for this deduction. Save changes and close.
Company Details Screen - Deduction tab selected as shown below:
Bike to Work: Setting Up the Deduction
Browse to Employees and select the Employee by clicking on their name. On the employee details screen select the Adds/Deds tab. Here you can add in the repayment value as agreed with the employee.
NOTE: If the employee is paid weekly the value of this deduction should reflect the weekly deduction from the wage. The same for any other pay frequency.
You should not entre the full value of the scheme here, unless the employee has requested to pay off the bicycle in full in one pay period, however the Deduction in the wage cannot be greater than the Gross, so the Gross wage is higher than this full deduction, add the deduction when processing the wage and do not add the figure on the employee details screen.
Any deduction value added in the employee details screen, is included automatically in all new wage runs. To stop the deduction, you would need to zero the deduction amount in this screen. Save changes and close.
To stop the deduction, you must zero the deduction amount in this screen. Save changes and close.
Payroll does NOT prompt you when the cost of the bike has been paid back in full.
Employee details screen below
Bike to Work: Enter the Amount
Browse to Wages and select the employee’s name to open their wage screen. You should see the deduction value under the Deduction tab and as an allowable deduction in the wage workings.
The deduction is taken off the employee’s total pay before tax is applied. This is where the employee makes that tax saving.
To Stop the Bike to work deduction – the value of the deduct should be zeroed. Click Back to the employee details to edit the deduction settings.
There are three limits, depending on the type of bicycle purchased.
•€3,000 on cargo and ecargo bikes.
•€1,500 on pedelecs and ebikes.
•€1,250 for other bikes.
The above limits include related safety equipment.
Prior to 1 August 2020, the limit for all bicycles and safety equipment was €1,000.
From 1 August 2020 to 31 December 2022, the limit for cargo and ecargo bikes was €1,250 and €1,500 respectively.
| Files | ||
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| Bike to Work Amount.png | ||
| Bike to Work.png | ||
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