Workride are offering the first-ever ride-to-work tax benefit scheme in New Zealand. They use an effective pre-tax salary sacrifice mechanism to enable employees to use FBT exemptions to get bikes and scooters tax-free, which follows a precedent of very successful international schemes.
If your organisation has joined Workride's ride-to-work scheme, you'll need to start making deductions when employees take up the offer. Getting that sorted in PayHero requires just a few simple steps:
Contact support@payhero.co.nz to have the Ride-to-Work Pre-Tax Deduction set up in your PayHero account. Important: The PayHero team needs to apply custom background settings to ensure the deduction is processed correctly, so don't try to DIY this step!
Once our team give the go-ahead, you can add the Ride-to-Work Pre-Tax Deduction to the employee's Default Pay tab and:
a) specify the amount to be deducted each pay as a negative value
b) enter the total value to be deducted
c) tick the 'Reduce balance' option
The deduction amount will be applied to each pay going forward, and will automatically cease when the full balance is recouped.