If you have moved mid year to BrightPay Cloud and have Employees with Benefit in Kind, you will need to ensure that the 'Notional Pay to Date' figures are entered for Employees within the Employees Menu > Mid Year Totals:
This will ensure that the Year to Date information for the Benefit in Kind is captured but we will also need to set the Benefit(s) up in BrightPay so that they continue to be applied to the Payroll:
To do this go to the Employees menu > Click on Expenses & Benefits > Choose the Benefit in Kind type you require by pressing the 'Add' button (e.g. Vehicle or Medical Insurance, etc.).
You will be prompted to enter the applicable details for the benefit type you have selected (E.g. Amount or Gross Premium, OMV & Carbon Class if vehicle, etc.).
(Example Shown is vehicle)
Date Selection
If you have chosen an annual benefit, it is important to select the first day of the first pay period as the start date for the Benefit. We will give the following example:
- You have just moved to BrightPay with a monthly payroll and the first period you will be processing is July. There is an employee who has a medical insurance benefit that started from the beginning of the year (01/01/2025).
- When entering the start date of the benefit within the Employees menu, we will not be selecting 01/01/2025. We will instead be selecting the date 01/07/2025 as this is the first day of the first pay period that you will actually be processing in BrightPay.
- Once the date and amounts are entered and the Benefit has been saved, you can go back to the payroll menu and click into the Employees payslip and the notional pay on the Benefit will be calculated and showing.
Monthly Calculation Method
BrightPay calculates Notional Pay by taking the Annual Amount and dividing it by the number of days within the particular month that has been processed.
As an example, lets take an employee that has an annual Medical Insurance Benefit with the Gross Premium of €1,200.
Let's also say that the first pay period that will be processed in BrightPay is August 2025. There are 31 days within this pay period so the Benefit will be calculated as:
1200 / 365 = 3.287 (Daily value of the benefit)
3.287 x 31 = 101.917 (Daily value of the benefit x Amount of days within the month)
101.92 (Notional pay this period, rounded up to the closest cent).
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