Bike to work scheme !!!!!

wogger

just wondering has anybody done this? , i got it up to the max of 1000 euro, was all grand until i got my first payslip with the first of the 12 monthly deductions for the bike , but it was for 85 euro !! 85 x 12 = 1020 euro, any body know what the story is ?

SteM

Maybe they'll do €85 * 11 and one off payment of €65? Depends on the payroll software that your company uses I guess.

oflahero

wogger wrote: »

just wondering has anybody done this? , i got it up to the max of 1000 euro, was all grand until i got my first payslip with the first of the 12 monthly deductions for the bike , but it was for 85 euro !! 85 x 12 = 1020 euro, any body know what the story is ?

Sounds like the first of 6. 12 months is just the maximum.

stuf

well it's you're employer that's doing the calculation so you should ask them

the 1000 should come out of your gross salary before PRSI and tax are calculated so you can see the real cost by comparing your net salary from last month to this

adrian522

Mine is deducted over 6 months not 12, so cjheck with HR or payroll or whatever.

poolboy

Unless i totally misunderstood this scheme the whole attraction is the tax breaks for both employer and employee which leaves the employee footing about 50% of the1000 depending on tax bracket should this not leave repayments half what your paying. Otherwise you got a 1000 euro loan.

85*6 = €510 is what I'd imagine your payments are

peterjmaxwell

While it may seem that way, the amount you spend is deducted from your gross pay (ie before you pay tax) and the effect of this is that your taxable income is lowered by the amount of the deduction so you pay less tax and this is where you save money.