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http://www.revenue.ie/en/tax/it/leaflets/medicali2.pdf
http://www.revenue.ie/en/tax/it/reliefs ... rance.html

Quote:
Where the employer pays the full premium for employees and the employee does not make good any amount to the employer, PAYE and PRSI must be applied to the gross (pre Tax Relief at Source) premium. To ensure that the employee is granted the relief afforded by TRS, the employee will be given a tax credit (at the standard rate) for the gross premium in his or her certificate of tax credits.



The employer pays the full medical insurance premium
On the Invoice from the medical insurance provider, there should be a grossed billed amount and a TRS (Tax Relief at Source) amount. The TRS amount should be 20% of the gross amount. For example;

Monthly
Billed this period €80
TRS Billed this period €20
Gross Billed this period €100

Step One. Get your employees to apply for health insurance tax credit if they have not already got this. The tax credit amount is 20% of the gross premuim (In the above example, this should work out at (20% of (100x12)) = €240
http://www.revenue.ie/index.htm?/claim- ... penses.htm

Step Two. Apply a BIK (Benefit In Kind) amount each pay period for the gross premium. For the example above, in Payback;
1. Click on the Employee icon to go to the employee screen.
2. Enter a new element. Select 'Health Insurance' from the list or type it directly into the elements grid
3. Type the gross premium amount into the grid €100
4. Click 'Details>>' at the top right and insure that the element type is 'Health Insurance'
5. Click the Update Employee button at the top of the screen

Step Three. Pay the TRS amount to the revenue, each month (€20 for the above example)


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