Hierarchy
EA-HRCGB (Software Component) Sub component EA-HRCGB of EA-HR⤷
PA-BN-FB-GB (Application Component) Great Britain⤷
PAOC_BEN_FBN_08 (Package) UK Flexible Benefits System: Great Britain
IMG Activity
| ID | OHFBNCC05 | Define Flexible Benefit Plan General Attributes for Company Car (FLEX) |
| Transaction Code | S_PLN_06000207 | (empty) |
| Created on | 20030526 | |
| Customizing Attributes | OHFBNCC05 | Define Flexible Benefit Plan General Attributes for Company Car (FLEX) |
| Customizing Activity | OHFBNCC05 | Define Flexible Benefit Plan General Attributes for Company Car (FLEX) |
Document
| Document Class | SIMG | Hypertext: Object Class - Class to which a document belongs. |
| Document Name | OHFBNCC05 |
Define Flexible Benefits Plan General Attributes for Company Car (FLEX)
Use
In this step, you define certain general attributes for each of your car benefit plans. These are:
- Salary Sacrifice: Set the indicator in the field SScr to assign your benefit plan as a salary sacrifice benefit plan.
- P11D Relevant: The field P11D is relevant if the benefits received by employees in the benefit plan are, due to their nature, not taxed on issue. Set the indicator in field P11D for reporting purposes only, to ensure these benefits-in-kind are included on a P11D form for employees, for later submission to the Inland Revenue.
- Employer National Insurance (NI) Contribution Neutrality: In the field ER NI, you define the nature of NI Neutrality within the benefit plan. You must select one of three possible options for NI Neutrality using the on-screen input help:
- NI Cost neutrality required for both over and underspending
- NI Cost neutrality required for overspending only
- NI Cost neutrality required for underspending only
Leave the field ER NI blank if NI Neutrality does not apply to the benefit plan you are defining.
Note: An employee "overspends" when he chooses benefit options within any specific benefit plan that are more expensive than the standard benefits provided by the employer for that particular plan. Conversely, "underspending" occurs when an employee takes benefit options within any specific benefit plan that are less expensive than the standard benefits provided by the employer for that particular plan.
Requirements
All required benefit plans must have been created before you carry out this step. In addition, to apply NI Neutrality attributes to any benefit area, you must also have already carried out the activities in the step Define Flexible Benefits National Insurance Neutrality.
Activities
Execute the activity and maintain the settings for Salary Sacrifice, P11D relevance and NI Neutrality as described above.
Example
Two possible scenarios are outlined below, illustrating the application of the NI Neutrality principle to an employee's holiday plan choices:
1. Employee "overspends" during holiday plan enrolment (holiday buy)
Pre-enrolment holiday value (25 days) = GBP 1153.75
Post-enrolment holiday value (30 days) = GBP 1384.50
Value of adjustment before NI Cost Neutrality is applied = GBP -230.75
Value of NI Cost Neutrality = 230.75 - (230.75 / 1.128*)
= GBP 26.18
Value of adjustment after NI Cost Neutrality is applied = GBP -230.75 + GBP 26.18
= GBP -204.57
Therefore, in this scenario, the employee has overspent and a saving of GBP 26.18 in employer National Insurance Contributions (NICs) is produced. These employer NICs savings will be refunded to the employee, and employer NICs remain as before enrolment.
2. Employee "underspends" during holiday plan enrolment (holiday sell)
Pre-enrolment holiday value (25 days) = GBP 1153.75
Post-enrolment holiday value (20 days) = GBP 923.00
Value of adjustment before NI Cost Neutrality is applied = GBP 230.75
Value of NI Cost Neutrality = 230.75 - (230.75 / 1.128*)
= GBP 26.18
Value of adjustment after NI Cost Neutrality is applied = GBP 230.75 - GBP 26.18
= GBP 204.57
In this case, the employee sells holiday and "underspends", and an extra GBP 26.18 of employer National Insurance Contributions (NICs) are produced. These additional employer NICs will be deducted from the employee, and employer NICs remain as before enrolment.
* The employer NICs rate for the tax year 2003-2004 is 12.8%. Therefore, the factor used to calculate the value of the change in employer NICs is 1.128 (1 + 12.8% ).
Business Attributes
| ASAP Roadmap ID | 203 | Establish Master Data |
| Mandatory / Optional | 1 | Mandatory activity |
| Critical / Non-Critical | 1 | Critical |
| Country-Dependency | I | Valid for countries specified |
| Customizing Attributes | Country Key | Country Name |
|---|---|---|
| OHFBNCC05 | GB | United Kingdom |
Assigned Application Components
| Documentation Object Class | Documentation Object Name | Current line number | Application Component | Application Component Name |
|---|---|---|---|---|
| SIMG | OHFBNCC05 | 0 | PLN0000014 | Great Britain |
Maintenance Objects
| Maintenance object type | C | Customizing Object |
| Assigned objects | ||||||
|---|---|---|---|---|---|---|
| Customizing Object | Object Type | Transaction Code | Sub-object | Do not Summarize | Skip Subset Dialog Box | Description for multiple selections |
| V_74_FBN_GB01_R | V - View | SM30 |
History
| Last changed by/on | SAP | 20030526 |
| SAP Release Created in | 200 |
