BIK - electricity?

DoraExplora

Hi, if an employer pays the home electricity bill for an employee, does this have to be included in their pay somehow, and how does this get shown?
the employee is paid weekly? i know theres a small benefits exemption of €250 but this will exceed this

Thanks

Barracudaincork

If some of the bill relates to the employee working at home then that part of the bill would not be deemed to be a BIK, the balance would. It would have to be accounted for in their pay in addition to their salary and PAYE deducted accordingly.

McCruiskeen

Please also remember that the amount of the bill deemed to be for personal use (and therefore the BIK) will have to be regrossed at the employee's marginal rate of tax and PAYE will need to be operated on the gross amount of the benefit received.

DoraExplora

just to complicat it a bit, if this emploee is entitled to a visually impaiered PAYE exemption- does that mean then it doesnt apply or is there still a PRSI issue??

McCruiskeen

Hi Dora

There is no such thing as a visually impaired PAYE exemption. There is a Blind Persons Tax Credit of €1,830 however. This would not affect PRSI as both employer's and employee's PRSI are calculated on gross income anyway.