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BIK notional pay

Heisenburg81 · 2017-04-16 16:15:16

Regular frequency BIK's like use of a company car are to be reflected on monthly payroll and treated as additional pay for employees. Irregular BIK like personal expenses paid are deemed notional pay and not additional pay - employer to gross up @ employees marginal rate and remit to Revenue. In this case, if not…

16-04-2017 4:15pm

#1

Heisenburg81

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Posts: 187

Regular frequency BIK's like use of a company car are to be reflected on monthly payroll and treated as additional pay for employees.

Irregular BIK like personal expenses paid are deemed notional pay and not additional pay - employer to gross up @ employees marginal rate and remit to Revenue.
In this case, if not additional pay, when a P21 is requested wouldnt the employee have an overpayment as extra taxes for BIK but no matching Gross pay to reflect the BIK?

How is this avoided by Revenue?

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Comments

#2 18-04-2017 12:25pm

CiboC

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Join Date: April 2009

Posts: 496

If an employee is being reimbursed legitimate expenses then there is no BIK issue, you are paying the employee back the expenses they incurred.

If it is personal items paid for by the employer, then it is easiest to just use a nett to gross facility on a payroll to make sure that the correct gross pay is recorded for the employee.

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