Recent News

  • We outline the changes to ...

  • What will happen next?...

  • Is there any real benefit?...

  • Don't be caught by these c...

Home Accounting Changes to BIK calculations for 2020 during the Covid-19 crisis

Blog

Changes to BIK calculations for 2020 during the Covid-19 crisis

A benefit-in-kind (BIK) is any non-cash benefit of monetary value that you provide for your employee.

These benefits can also be referred to as notional pay, fringe benefits or perks.

Below, we will outline the changes to these benefits for 2020 and how that will affect you and your employees.

  1. Where an employee has a car provided by his or her employer and limited personal use many employees have found they are doing little or no business mileage during the crisis. In this case, you can use the business mileage travelled in January as the basis for calculating BIK the amount of BIK due.
  2. Where an employer pays for taxi fares to get employees to and from work due to health and safety concerns, then no BIK will apply for the duration of the COVID-19 period.
  3. Where an employer rewards an employee with multiple vouchers during the Covid-19 crisis, then the rule limiting to one voucher will not apply. The upper €500 still applies.
  4. BIK on private healthcare — Where an employer receives a refund from the healthcare provider, then the amount subject to BIK will be reduced.
  5. Where an employer provides equipment e.g. laptops, printers, office chair etc. to an employee to set up a working space in their homes, BIK will not arise.
  6. Covid-19 testing and Flu vaccination costs covered by an employer will not be subject to BIK.

For complete details on BIK for employers click below

If you have any questions or need assistance please contact us at 01-5445375 or info@solve.ie.

No Comments

Post a Comment