Are you paying Medical Insurance on behalf of your employees??
    Have you fulfilled your Employer obligations in the relation to the BIK aspects of this benefit?Where the employer pays the insurance premium on behalf of the employee the net premium payable is 80% of the gross premium. The employer then must pay the remaining 20% direct to the Revenue when paying their Preliminary Tax payment to the Collector General. Where the employer is paying medical insurance on behalf of the employee, this is treated as a Benefit In Kind. The value of the BIK is equal to the gross premium payable for the employee. Employees are entitled to claim tax relief from Revenue at the rate of 20% of the gross premium. This is given in their annual tax credits.
    Employees paying medical insurance through their employer or direct to the Insurance company will receive tax relief at source, as the insurance premium is reduced by the standard rate of tax, currently 20%. The net premium payable by an employee is 80% of the gross premium.

    Topics: Blog, Tip of the Month

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