Definition of payrolling of benefits

When an employee receives a taxable benefit in kind from his/ her employer, his/ her tax code will be adjusted to take account of the benefit. Employers are then required to process adjusted pay as you earn (PAYE) codes, as well as submitting a P11D for each employee. Payrolling of benefits is an alternative system, under which employers do not have to operate adjusted PAYE codes; instead the cash equivalent of the benefit is added to the employee’s pay and PAYE operated on the total. [1]

FT Articles & Analysis

No articles are associated with this term

Related Terms