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Company Health Insurance

  • 10-12-2012 1:26pm
    #1
    fatlog
    Registered Users, Registered Users 2 Posts: 83 ✭✭


    Hi,

    This is probably the wrong place to post this but...

    I work for a company that offers health insurance. I am trying to get an idea of how much it will cost me per year and I'm finding it difficult.

    Say for example the plan they offer costs €1000.
    They pay the full amount.

    But I have to pay the tax on this.
    So is it 52% of this amount that I have to pay?
    And what is the BIK tax credit likely to be?

    Thanks


Comments

  • #2
    RobFowl
    Moderators, Science, Health & Environment Moderators Posts: 11,669 Mod ✭✭✭✭RobFowl


    I moved this as thought it would be more appropriate in this forum


  • #3
    LeftBlank
    Closed Accounts Posts: 504 ✭✭✭LeftBlank


    AFAIK you will pay tax on the full amount.


  • #4
    fatlog
    Registered Users, Registered Users 2 Posts: 83 ✭✭fatlog


    Yeah so I pay 52% tax on the full cost of the plan which for example is €1000. So my tax would be €520? And I can then get a BIK tax credit applied. I sthat correct?


  • #5
    tatli_lokma
    Registered Users, Registered Users 2 Posts: 3,332 ✭✭✭tatli_lokma


    If, as per your example the policy costs €1000 per annum and the employer pays this, you pay nothing, but you pay tax on the €1000 as it is seen as BIK and it has a monetary value attached.

    So €1000 per year is €83.33 per calendar month. This €83.33 will be added to your Gross pay and you will be taxed on it. So if you get €2000 in salary, you will also see the €83.33 in your Gross column, and you will be taxed on €2083.33. It will also be factored in for your PRSI and USC payments.

    Not sure what the BIK credit amount currently is - been a while since I looked it up. But to get an idea of your take home pay if you get the insurance, then I would recommend using one of the umpteen tax calculators you can get online and put your details in there.


  • #6
    fatlog
    Registered Users, Registered Users 2 Posts: 83 ✭✭fatlog


    Little Ted wrote: »
    If, as per your example the policy costs €1000 per annum and the employer pays this, you pay nothing, but you pay tax on the €1000 as it is seen as BIK and it has a monetary value attached.

    So €1000 per year is €83.33 per calendar month. This €83.33 will be added to your Gross pay and you will be taxed on it. So if you get €2000 in salary, you will also see the €83.33 in your Gross column, and you will be taxed on €2083.33. It will also be factored in for your PRSI and USC payments.

    Not sure what the BIK credit amount currently is - been a while since I looked it up. But to get an idea of your take home pay if you get the insurance, then I would recommend using one of the umpteen tax calculators you can get online and put your details in there.

    perfect. now i get it!!!


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