No, but as this seems to be an interest free loan I think you will be liable to PAYE/PRSI on the notional value of the interest (current rate used by Revenue is 11%). See [broken link removed] for further details.
You are being ripped off, if 11% is being applied on the full amount (695) and not to the reducing balance.
The APR on this loan exceeds 21%. You would be better off using the direct debit monthly repayment option (to the insurance company, not your employer) because it would be cheaper and no tax implications.
That would seem a fairer way to do it but the worked examples in the Revenue document only reduce the balance on an annual basis and in the example they give for a one year loan they do not use a reducing balance.
It would have been cheaper for you to pay the BIK which would only have been at most 48% of €76.45, the only winner here is your employer who gets out of the hassle of operating BIK and gets a nice return on the loan (as mentioned this equates to an APR of around 21%)
Did anyone look at the amount involved. Its only 690 odd euro. I don't think the revenue will go to town on your employer if it is found.
It wouldn't even stand out.
If your employer is willing to take the risk i would its madness paying the 11% interest you would have been better off going to the credit union.
I don't think this is right, the 11% charged in a per annum charge not a monthly one.
In the Revenue Guide on BIK rules, the chapter on Pref Loans
Link [broken link removed]
Provides a number of examples and if you look at examples 1 & 2, it is very clear that on a one year loan, the BIK is calculated on the original amount advanced but the interest is spread over either your weekly or monthly pay.
You are seriously being ripped off as on a loan of €695 the BIK should only be €76.45 per annum.