How to Setup the Bike to Work Scheme in Collsoft Payroll
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. Then rename one of the deductions that is not in use to 'Bike to Work' and tick the TAX, PRSI & USC allowable columns for this deduction, as shown below:
You then open the employee details screen for the employee in question and select the Adds/Deds tab. Here you can enter the amount that is to be paid back by the employee each period, as shown below:
Now when you run a wage for the employee, the amount entered above will be deducted from the employees wage before Tax, PRSI and USC is calculated.
Note: The 'Bike to work' scheme is PAYE, PRSI & USC allowable up to the value of €1000.00. The bicycle and equipement must be paid for over a single maximum 12 month period i.e. during one tax year.
For more information on how the scheme works, go to http://www.biketowork.ie/