Non Tax Adjustments

Mini850

Hi everyone

I’ve a question about my pay.

I work for a multinational company which means we get a few benefits like pension contributions and health insurance for the family

So my understanding is that I will pay BIK on the health insurance which is grand

On my payslip, the health insurance value is added to my gross pay at the start and my tax is calculated from that value.

All good so far

So at the other side of my payslip it shows my gross pay and it shows my total Tax deductions (paye, prsi, usc etc). Minus my deductions from my gross pay and I should have my net pay, but under that In the non tax adjustments box, I see a minus value equal to the value of the health insurance. This value gets minused As another deduction and I then have my Net pay

This doesn’t sound right to me. Seems to me I’m just paying the value of the health insurance at the end as the full amount gets minused from my wage as an additional deduction, and it’s added to my gross so I pay BIK

Anyone help?

namenotavailablE

Adding the BIK to your regular pay ensures that you pay the tax/PRSI/USC on the BIK.

That addition to your gross is then cancelled by the non-tax adjustment of the same value- so, mathematically, your gross pay is only reduced by the tax/PRSI/USC on the BIK value of the health insurance. That's the real cost to you of your health insurance- roughly 50ish% of the full cost!