BIK on health insurance

[luckylu]

Hi,
My employer pays 100% of my health insurance. The policy is Gross 1731.26. Net 1441.15

I thought BIK was gross policy x 0.51(tax) / 52 weeks
which should mean i pay 16.97 per week - but i pay double that ?
which works out at 1742 for the year.

So I'm meant to be getting free healthcare as a perk of the job but i end up paying in tax more than the gross policy price?

would it not be cheaper to get my own policy so I'm not paying any BIK?
and do these figures look right?

if anyone could explain to me .. thanks

 

[Joe_90]

The BIK Benefit In Kind is the amount of the Gross Premium.

The Tax, PRSI and USC is 51% of the BIK.

 

[luckylu]

Thanks Joe_90 ...

Ok so its not a perk of the job at all. Essentially I'm paying for it myself.
the company get to claim tax relief on "paying it"
and i get to claim tax relief on actually paying it also ...

have i that right ?

 

[luckylu]

or i think I'm reading my pay slips wrong ..
so the money that goes in as BIK is work paying me for covering my policy and then all i pay is 51% on that out of the taxes list
so on a 1731.26 gross policy i'm only paying 882.94 in tax out of my own money
correct?

 

[elcato]

Yor are reading the payslip incorrectly. Where it states taxable pay, you should see your gross salary and the BIK below it. The sum of these are the taxable pay. You are deemed to be earning your gross plus BIK i.e
999.9 salary
33.29 BIK (1731.26/52)

Somewhere else they calculate the PAYE, USC and PRSI. Does this make sense ?

Update:My post crossed but looks like you have solved the mystery

 

[luckylu]

yes i think i finally get it .... thanks !!!! there was a lot of head scratching going on this morning !!

engineering no problem .. tax stuff... mind boggling!

thanks Joe