Adding and Managing Perks

Introduction 

In today's competitive job market, most organizations rely on offering attractive perks for retaining and attracting top talent. Understanding this, Keka HR provides a comprehensive solution for adding and managing a variety of employee perks seamlessly. This support article serves as a guide on how to efficiently use Keka to implement, track, and manage perks for employees.

Here are some common perks that organizations add to their compensation packages. 

• Company Car or Transportation Benefits
• Meal Card or Passes
• Skill Development Reimbursement

Let us look at how you can add and manage perks on the Keka HR portal - 

Adding a Perk

1. Go to Payroll → Benefit → Perks.

2. Under the Perks sub-tab, you'll see all existing perks listed.

   

3. To add a new perk, click Add Perk in the top-right corner.

   

4. In the Add Perquisite window, enter the following details:

• Name of the perk

• Description

• Select if it's a recurring perk (paid every pay cycle) or ad-hoc (paid on-demand).

• Perquisite Category: Choose from the pre-configured categories using the dropdown.  

Configure tax implication for perks

The next set of options determine the tax implications of the perk. You can choose if the perk is taxable or not as per the income tax regulations. 

1. Choose Yes if the perk is taxable, or No if it's non-taxable.

2. Employer: Select if the employer covers the tax.

3. Employee: Choose if the employee bears the tax.

4. If the employer bears the tax:

   • You can decide whether to include the tax in the employee’s income tax calculation. Select the checkbox under the employer-bears tax option if you want the tax to be excluded under section 192(1A). 

Showing the Monetary Value of Perks

1. Choose whether to show the monetary value of the perk to employees.

• Yes: Display the monetary value of the perk.

• No: Hide the monetary value (e.g., if it’s non-taxable or the employer is covering the tax).

Configuring the Value of the Perk

1. Under How is Perquisite Value Calculated?, choose one of the following options:

   • Fixed amount for all employees: Enter a fixed value and taxable amount (if taxable).

     

   • Formula-based value: Choose this if the perk value will be calculated based on a formula (e.g., employee salary).

     • Click Add to define the formula.

     • Select available components from the list and add the formula for the perk value and taxable amount.

       

   • Individual employee value: Define a custom value for each employee at the employee level.

Proration of Perks

1. Enable Proration: Adjust the perk value based on actual days worked.

• For example, if an employee joins or exits mid-month or takes Loss of Pay (LoP), the perk value will be prorated according to the number of payable days.

Editing a Perk

1. To edit an existing perk, go to the Perks window.

2. Click the Edit icon next to the perk you want to modify.

3. In the Edit Perquisite window, make your changes.

4. Click Update & Continue to save your updates.

• Make the changes to the perk in the Edit Perquisite window and then click Update & Continue.

Deleting a Perk

1. To delete a perk, click the Delete icon next to the perk.

Note: You cannot delete a perk if it is currently assigned to employees. You must first remove the perk assignments before deleting it.

With these steps, you can seamlessly manage employee perks in Keka—ensuring compliance, accurate payroll calculations, and a better employee experience.