Just wondering if I have the treatment of BIK in this situation correct. Noticed the gym has a corporate rate which is better than the regular rate. So, myself and the other half are proprietary directors of our Co. If I get the Co. to pay for the family gym membership (they basically throw the kids in for the price of two adults), we are liable for BIK. So if the value of the membership is €1,400 for the year. Then we each add €700 to our gross wage for the year( but not pay the net, just the taxes), so we pay PAYE, USC, PRSI on an extra €700 each, as if it had been paid in our wages. Am I correct?
Is this the way Health Insurance is treated also? So if the Co. pays for health insurance for the family for the year to the value of €3,000, do I add €1,500 each extra to our annual earnings(and not pay the net)? And can I further break that and gym membership into a monthly addition, ie. for health insurance, €1,500 divided by 12 = add an extra 125 each to our gross monthly wage for paying PAYE PRSI and USC on?
Is this the way Health Insurance is treated also? So if the Co. pays for health insurance for the family for the year to the value of €3,000, do I add €1,500 each extra to our annual earnings(and not pay the net)? And can I further break that and gym membership into a monthly addition, ie. for health insurance, €1,500 divided by 12 = add an extra 125 each to our gross monthly wage for paying PAYE PRSI and USC on?