BIK ON PAYSLIP

alexcr72018

payroll or HR will not give me any help or info in relation to BIK for my health and dental insurance. My employer pays 100% of the policy.
My policy for health for one adult and one child is 1173€ and my dental gross policy is 189.27€.On my payslip Under gross is BIK dental 25.88€ and VHI is 92.20€. does this seem correct? I am claiming the 300€ medical insurance tax credit? Thank you

namenotavailablE

The employer should include the gross amount of both policies in your payslip as benefit-in-kind (BIK). The employer then pays the net of tax relief value to the insurer and separately pays the tax relief for each policy to the Revenue Commissioners.
You'll be paying PAYE/PRSI/USC on the amounts included as BIK and need to claim the appropriate tax relief from the Revenue Commissioners.

On the basis of the values you supplied (and assuming that the health policy value of €1173 is the gross amount and that you're paid monthly), you should see €1173/12 = €97.75 for health BIK and €15.77 for the dental policy on your payslip.

One other point to note: the maximum tax relief on health insurance is €200 per adult - this would apply if the adult premium was at least €1000. If less than €1000, the tax relief is 20% of the adult premium. For children, tax relief is the lower of €100 or 20% of the premium for the child. It isn't possible to be getting the full €300 tax relief if the total gross policy is €1173.

spoiler

The VHI is worked out as follows:

300*20%=60
1173-60=1113/12=92.75 slight difference to 92.20 most likely worked out on days hence can't get exact figure.

The dental I am not sure the 189.27 is this a full year price or was it taken out mid year?

The 300 is a tax credit that's why you take 20% of it.

Payroll/HR should explain it to you or maybe they don't understand it either!!

salnado

I have a similar question but with some specifics that make me uncertain as to the correct treatment.

My employer adds the gross VHI premium to my earnings on my payslip and then deducts the net premium on the deductions side.
My tax credit on the payslip does not include the medical insurance relief.

I am completing a Form 11 due to some other income. My employer says I should not enter the medical insurance on the Form 11 as I have been granted the relief already through payroll (essentially by adding the gross premium to my earnings but only deducting the net premium).

If I do include the premium on the Form 11 it reduces my tax bill by €700 (2 adults, 3 kids) after everything else is accounted for and while that would be nice it doesn't seem right as my employer should be doing the calculation correctly (> 4,000 Irish employees).

Anybody got any thoughts on this, experience of something similar?