How to set up Cycle to Work deductions

If you have a Salary Sacrifice Cycle to Work scheme in place, Pento has a pre-defined Pay item you can use to ensure the deductions are processed correctly. 

If you are unsure if you use Salary Sacrifice, please refer to HMRC's Cycle to Work guidance

Setting up Cycle to Work on Pento

To set up the Cycle to Work deductions, you will need to follow the steps below:

1. Navigate to Employees from the left sidebar
2. Select the relevant employee 
3. Select the Pay Items tab
4. Select Add pay item
   
5. Once you have selected Add pay item, you will see a list of our predefined Pay Items similar to the below screenshot, select Cycle to Work
   
   
6. Once selected, you will be directed to the following screen
   
   

Total Amount

Please enter the total loan amount 

Already Paid

If you have transferred to Pento part way through a scheme's term, you will need to enter the total figure already recovered 

Split payment over

If you are setting up a new scheme, please enter the amount of months you will be recovering the total cost over i.e. 12 months

If you have transferred to Pento part way through a scheme's term, please enter the amount of months you will be recovering the remaining balance i.e. if the full term was 12 months and your first live payroll with Pento is in the 7th month, you would enter 6 remaining months

Starting from

If you are setting up a new scheme, please enter the date you would like the first deductions to be processed

If you have transferred to Pento part way through a scheme's term, please enter the date the first deductions will be processed in Pento, not the original start date.

Include pay item in pension calculations

If you want pension contributions to be calculated on salary before the Cycle to Work deduction, then do not tick Include pay item in pension calculations

If you want pension contributions to be calculated on salary after the Cycle to work deduction, then please tick Include pay item in pension calculations

Amount per payroll

This will automatically populate based on the information provided in the above fields

• Select Save & Close

Frequently Asked Questions

I am processing a parallel payroll and have entered the correct information, however the amount per payroll is incorrect

Pento is a date driven platform, therefore if you are processing a parallel run for September after the 5th of October, the figures will be incorrect. You will need to amend the scheme details as if you were adding the deductions to start in October, and manually add a gross deduction pay item to the payroll draft for the Cycle to Work