How do I set up the Company Car component - Use of motor vehicle acquired by employer component?

This feature is available on all PaySpace editions

The private use of a Company Car is taxable and should reflect as a fringe benefit.

Step 1: Add the Use of motor vehicle acquired by employer NOT via Operating Lease component on company level and indicate whether it should be part of the package or not.

      Navigate > Configuration > Payroll > Payroll Config > Payroll Components 

      

      

      

Note! Enabling the "what percentage of goods being delivered by company cars is vatable" checkbox will trigger the VAT to calculate.

Considerations - 

1. If this component is part of the package, the Basic Salary will decrease with the Use of motor vehicle fringe benefit value.
2. If a Pool car is used, the start date and end date can be captured.
3. If using the Gross-Up Company Car with Recovery component, the fringe benefit calculation should be done manually before adding the Gross up value.
   

Step 2: Add the component under an employee's Fringe Benefit section on the Recurring Payroll Components screen.

      Navigate > Employee > Payroll Processing > Recurring Payroll Components > Fringe Benefit

      

      

How to complete this component window?

1. Select the Effective date (when the employee started using the vehicle). The system will not prorate the taxable benefit based on this date.
   
2. Select the Purchase date. If the date is prior to 1 April 2018, 14% VAT will be applicable otherwise VAT will be calculated at 15%.
   
3. Enter the Determined Car Value Excluding VAT.
   
4. Enter the Car description.
   
5. If the car was subject to a maintenance plan when it was bought, 3.25% will be used in the calculation otherwise 3.5%.
6. Enter the VAT Amount on the Determined Car Value if applicable. The Determined Car Value Excluding VAT plus the VAT Amount (if applicable) will be used in the calculation to determine the fringe benefit on the company car.
7. The taxable value will be reduced with any Compensation to employer for private use.
8. Select the applicable Taxable option (80% default).
   
9. The pro rata taxable value will be based on the number of days captured on the FB Company Car Days override Note component.

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