Calbulate BIK on Health Insurance

Kaskade

Hi

I am finding it really hard to find the steps/rules that are applied to calculate the amount of BIK paid on health insurance. Any insight into this would be much appreciated. This is what I understand at the moment:

Pay slip has an entry under payments for €200 BIK VHI every month. So total for the year is €2400. This is the grossed up figure I think so I assume the following deductions apply:

Single person earning €40000 a year (higher rate applies)
41% PAYE - €984
7% USC - €168
4 % PRSI - €96
Less 20% Tax Credits - €480
Total Deductions - €768

Single person earning €30000 a year (lower rate applies)
20% PAYE - €480
7% USC - €168
4 % PRSI - €96
Less 20% Tax Credits - €480
Total Deductions - €264

Maybe I have this completely wrong so any advice welcome.

Citizenpain

calculations seem fine. what's the question ?

Kaskade

I was just assuming that BIK was calculated as above but wasn't sure so wanted to ask. Our policy is being changed from VHI to Aviva and the benefits are reduced. They are claiming we will pay less BIK each year and it will allow us to pay an extra contribution ourselves to get similar cover. I wanted to do the calculation to see if they are telling the truth or not!

Arciphel

If your employer pays your VHI for you, then you need to claim the 20% relief on the BIK yourself as it is not granted at source. AFAIK.