UK Payroll - BIK deductions to align to final termination pay period
Summary:
How to ensure BIK deductions align to final termination pay period
Content (please ensure you mask any confidential information):
There is a setting which allows us to enter an annual cost to be deducted in equal instalments through the tax year, and this works if the employee remains in employment up to and including March pay period.
However, if the employee is terminated prior to the end of the tax year the system deducts the remaining balances in the final pay period, even though the benefit deductions should terminate effective from the last pay period (end of pay period for cash plan and PMI, and from termination date for company cars & vans).