Calculate the cash equivalent of a car benefit you're payrolling

How to use Sage 50 Payroll to calculate the benefit in kind (BIK) cash equivalent of a company car benefit.

To payroll a benefit in your software, set up a benefit in kind payment then use it to process the cash equivalent of the benefit.

The calculation for cash equivalents varies depending on the benefit. Sage 50 Payroll simplifies car benefits by calculating the cash equivalent for you.

The employee's car record allows you to indicate that you're payrolling the car. If you select this option, your software uses the car details to calculate the annual cash equivalent values automatically.

1. Double-click the relevant employee on your employee list.
2. Go to the Cars/Fuel tab.
3. Use the Car Registration drop-down to select the car.
    NOTE: If you haven't set up the car record, follow the create a new car record article. 
4. Check the car details are correct, and select the checkbox beside Is this car being payrolled?
5. Check the table in the bottom right of the Cars/Fuel tab for the cash equivalent values.
6. When you're finished, select Save then Close.

Divide the annual value by the employee's number of payments per year, and process this as a Benefit in Kind (BIK) payment each period. ▼ View an example.

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