If you have an employee who chooses to opt out of the benefit or leaves mid-year, an adjustment to the benefit cost, or an available to date will need to be entered. To do this, follow the steps under the relevant section below.
Available to date
If an employee leaves your employment partway through the tax year with an active benefit record. The leavers wizard will prompt you for an available to date. SelectPay uses the available to date in the formula below.
Benefit adjustment = (number of active days ÷ 365) x Benefit cost - Benefit YTD
📌Note: The number of active days, is how many days the benefit record has been active for in the tax year. Count from 6 April to the Available To date.
Example
Annual benefit record value: 1200.00
Benefit year-to-date value: 200.00
Leave date: 20 June
Number of days the benefit was available: 76
(76 ÷ 365) x 1200 - 200.00 = 49.86
Adjust the benefit cost
If the employee chooses to opt out of the benefit, or if you do not wish to process the benefit adjustment for a leaver. You can adjust the benefits cost to you value and adjust the available to date. To do this, follow the steps below.
📌Note: If the employee has already been processed through the leavers wizard, you will need to reinstate them to make changes to the benefit record.
Adjust the benefit record
Click Payroll, and then click Employees.
Find and select the required employee.
Click Expenses, then Benefits.
Double-click the active benefit.
Adjust the Cost to you, to match the YTD Value taxed.
Click Save and Close.
Set available to date
Click Payroll, and then click Employees.
Find and select the required employee.
Click Leavers, then click Next.
If required, select the Process Pay checkbox.
Click Next.
Change the Available To date to 5 April.
Click Next, then click Update.
This will set the benefit deduction in the current period to 0.