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[2011] Cycle to work scheme
https://forum.payback.ie/viewtopic.php?f=5&t=37
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Author:  eamon [ ]
Post subject:  [2011] Cycle to work scheme

The cycle to work scheme is described here:
http://www.revenue.ie/en/practitioner/l ... cycles.pdf
Please note that the employer should purchase the bike, otherwise the exemption will not apply.

The money should be deducted from the salary by means of salary sacrifice before any tax / PRSI calculations are made. The Revenue leaflet advises to treat the scheme as Benefit in Kind and proceed with the salary sacrifice

To do a salary sacrifice in Payback, assuming a gross of €1000 and a salary sacrifice of €100 please set up the elements and deductions like this:

Code:
Set up these elements:
Description            Amount    Type        Tax    PRSI   Levy
Salary                 900       Normal      Y      Y      Y
Salary Sacrifice       100       Normal      Y      Y      N

And this deduction
Description            EE Amount      Tax
Salary Sacrifice       100            N

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