Processing benefit through payroll

Once calculating the car and/or fuel benefit, the software will create a notional payment and allocate it to the relevant employee records.

Multiple car allocations will merge into a single Car Benefit payment.

The system will take the calculated benefit for an employee and split it into a periodic ‘payment’, depending on the number of pay periods left in the tax year, which will be set up automatically as the standard value in Employee details.

When payroll is processed, that amount will be added to the employee’s taxable pay, without actually paying them the amount, so that the tax on their benefit is deducted correctly.

At the end of the tax year or the end of the car allocation, the system will process the residual amount rather than the standard amount.