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Treatment of CT withheld on VHI payments

steelbar · 2013-02-01 10:56:47

Hi there, I am struggling on getting my head around this, and my tax is a bit weak! Should the CT withheld on VHI/Medical Insurance payments be credit or debited to the P&L. I have two recurring journals here for different Insurers and they are different. One is prepaid (the net amount of the policy) for the year, and it…

01-02-2013 10:56am

#1

steelbar

Registered Users, Registered Users 2 Posts: 352 ✭✭

Join Date: April 2007

Posts: 301

Hi there,

I am struggling on getting my head around this, and my tax is a bit weak!

Should the CT withheld on VHI/Medical Insurance payments be credit or debited to the P&L.

I have two recurring journals here for different Insurers and they are different.

One is prepaid (the net amount of the policy) for the year, and it CT is being credited on the P&L

The other is paid my monthly DD and CT is being debited to the P&L.

Which is correct?

Thanks in advance

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Comments

#2 01-02-2013 1:33pm

Alan Shore

Registered Users, Registered Users 2 Posts: 735 ✭✭✭

Join Date: May 2010

Posts: 734

Hi,

The company has to pay over theTRS on medical insurance with its CT1.

If you post the payment for medical insurance into wages then

Dr wages
Cr CT due

So that you effectively end up with the total cost.

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