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.
Calculate the benefit daily rate.
Benefit daily rate = (Annual benefit cost ÷ Days remaining in tax year from benefit start date)
Multiply by the number of days the benefit was available.
Revised benefit recalculation = Benefit daily rate x Days benefit available
Subtract the amount already paid through payroll.
Benefit adjustment = Revised benefit recalculation − Benefit year-to-date value
Examples
Record added at Start of tax year
Benefit annual cost: 1200.00
Benefit paid year-to-date value: 200.00
Available from date: 6 April
Benefit end date: 20 June
Number of days the benefit was available: 76
Number of days the benefit would have been active: 365
(1200 ÷ 365) x 76 - 200 = 49.86
Record added partway through the tax year
Benefit annual cost: 3560.00
Benefit paid year-to-date value: 593.33
Available from date: 15 April
Benefit end date: 4 June
Number of days the benefit was available: 51
Number of days the benefit would have been active: 356
(3560.00 ÷ 356) x 51 - 593.33 = -83.33
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 benefit 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.