Payrolling benefits

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Following the clarification in the rules around the payrolling of benefits for employers, we have included the functionality for users to process benefits under these new rules. Please note this guidance does not cover the upcoming voluntary payrolling of benefits in kind.

 

 

The payrolling of benefits function has been designed to deal with two payroll situations,

 

1. Firstly where the payroll system is capable of accounting for employers NI contributions on benefits in year leaving no payment due to HMRC at year end (NI already dealt with)

 

2. The other situation is where the payroll system is unable to account for employers NI contributions on benefits in year and the NI must be calculated and paid at year end (CS P11D to calc. NI)

 

To select one of the above options, go to the 'PAYE refs' screen and use the box below to choose.

 

payroll_selector

 

To select a benefit to payroll you must go in to the benefit details and within the override box or tab (depending on benefit) and tick the 'Payrolled' box.

 

Payroll_tick_box

 

Payrolled benefits will be reportable to HMRC but will not produce a tax charge to the employee.

 

To check the benefits that have been payrolled please see the following reports from within the Employers Admin reports menu:

 

• Payrolled benefits report

• Class 1A reconciliation