Setting up a Cycle to Work or Bike to Work pay code is a crucial step in promoting a corporate initiative that encourages employees to commute by bicycle. This pay code allows you to effectively manage and deduct costs associated with the program, including providing tax-efficient benefits for participating employees.
By implementing this pay code, you can promote sustainable commuting options, enhance employee well-being, and contribute to environmental sustainability.
📌Note: The Cycle to Work or Bike to Work pay code is deducted before Tax, PRSI, and USC.
To set up this pay code according to client requirements, follow these guidelines:
Negative Taxable Allowance.
Taxable Indicator: Set to Taxable.
PRSIable Indicator: Set to PRSIable.
Pay Code Type: Select Allowance.
USCable: This box should be checked.
Pension: This box should not be checked.
ASC Indicator: This box should be checked.
Pension Related Deduction: Check this box where appropriate.
🤓Tip: If you are using a reducing balance pay code, make sure to enable the reducing balance option.
As an alternative, to set up this pay code:
Income Continuance Deduction.
Taxable Indicator: Set to Income Continuance.
PRSIable Indicator: Set to Non-PRSIable.
Pay Code Type: Select "Deduction."
USCable: This box should be checked.
Pension: This box should not be checked.
ASC Indicator: This box should be checked.
Pension Related Deduction: Check this box where appropriate.