How to account for Salary sacrifice in Clearbooks

Question asked by Stephen Cooke 10 years ago

Hope this query makes sense. I have just started a Cycle to work scheme in the company and one of my employees now sacrifices £83 a month from their salary for the hire of a qualifying bike. I am using open payroll and have entered the £83 as a pre-tax deduction. Open payroll only exports my net salary and HMRC payments into clear books. In order to account for the £83 rental do I need to create a journal manually or is their a simpler way to treat deductions ?

Thanks

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7 Replies

Hello Stephen,

At the moment, you will be able to add the information under the employee's details. There will be an option to turn on the salary sacrifice option. The figure you will include is the nominal figure (eg yearly salary + the cycle hire allowance on a yearly basis) which will show up on payslips.

The PAYE/NICs will be based on the gross salary figure.

Hope this helps,

Vanish

Best answer
10 years ago

I had a similar question as well - so any any help would be appreciated. Thanks.

10 years ago

Hello Stephen,

At the moment, you will be able to add the information under the employee's details. There will be an option to turn on the salary sacrifice option. The figure you will include is the nominal figure (eg yearly salary + the cycle hire allowance on a yearly basis) which will show up on payslips.

The PAYE/NICs will be based on the gross salary figure.

Hope this helps,

Vanish

Best answer
10 years ago

Hi Vanish Thanks for your response but I still have questions. The only salary sacrifice entry I can see seems to relate to Pension payments only. Please can you provide more specific pointers to the entries relating to other salary sacriice options, like cycle to work or childcare. Thanks steve

file

10 years ago

Hello Stephen,

Sorry for the delay.

Once you toggle on the salary sacrifice drop down, you will be able to enter the nominal value. An additional box will appear for this figure as shown below.

file

Please do this to solve your query.

Vanish

10 years ago

Was just looking at this in relation to Cycle2Work also

Would be good if a total sacrifice amount + a time period could be set, as this method would run until manually turned off unless I'm mistaken?

One option is to run the scheme for 18months which would involve a nominal salary of Gross+66% the total sacrifice then remembering to turn it off after 18 months - Could be easier!

9 years ago

Thanks for the suggestion Dave.

If you would like to add this as a separate post in our Ideas section it will help it become more prominent and attract more attention.

All the best,

Chris

9 years ago

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