What is "Made Good"?
The "Made Good" field when adding benefits is designed to account for value added outside of Onfolk, relating to taxable benefits.
It's important to understand that "Made Good" amounts are not deducted from the taxable amount on an employee's payslip.
How "Made Good" Works
Capturing Data: "Made Good" captures information about payments made outside of Onfolk for reporting purposes.
Taxable Income: The full value of the benefit remains as taxable income, regardless of any "Made Good" amount.
Separate from Payroll: "Made Good" amounts are assumed to be settled outside of the Onfolk payroll system.
Here's an example, let's say an employee has a £200 medical benefit, and they want to add a partner to the plan for an extra £100. The £100 is paid directly by the employee outside of Onfolk.
The full £200 is still considered taxable income.
The £100 "Made Good" is recorded for reporting but doesn't affect the payslip calculation.
When to Use "Made Good":
For recording payments made outside of payroll
For accurate benefit reporting to HMRC
When Not to Use "Made Good":
If you want to reduce an employee's taxable income
If you need to apply a deduction to the current payroll
Applying Deductions
If you need to reduce an employee's pay or taxable income for the current payroll period, use pay items directly instead of the "Made Good" feature. This will ensure the deduction is reflected in the employee's payslip and taxable income calculation.