# is Health Insurance Taxable?



## JohnJay (25 Nov 2006)

If an employer pays an employees full health insurance for a year, is it taxable?


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## bazermc (25 Nov 2006)

Yes taxable both income tax and PRSI, at your marginal rate, its called a BIK or benefit in kind.


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## Domo (25 Nov 2006)

Your employer should include the taxable anount (amount paid for health insurance) in your Form P60, and you should pay tax on this amount during the tax year.


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## bazermc (25 Nov 2006)

Yes, the rules changed recently, it is now the employers obligation to charge BIK and make returns etc....


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## JohnJay (25 Nov 2006)

Thanks for your replies.

So basically the only non-taxable "perk" you can get from your employer is a contribution to your pension, correct??


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## bazermc (26 Nov 2006)

JohnJay said:


> Thanks for your replies.
> 
> So basically the only non-taxable "perk" you can get from your employer is a contribution to your pension, correct??



Nope there is also bus travel tickets, creche facilities, cheap canteen.  cannnot think of any more but there is more, i am sure other AAM people can let us know


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## ClubMan (27 Nov 2006)

Private health insurance premiums paid by the employer are subject to _BIK _income tax and _PRSI_/health levy deductions at source (payroll) as explained above. But the employee can still claim a standard rated tax credit in respect of these premiums. You need to do this manually (i.e. separate from employer payroll issues):

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## ClubMan (27 Nov 2006)

bazermc said:


> Nope there is also bus travel tickets, creche facilities, cheap canteen.  cannnot think of any more but there is more, i am sure other AAM people can let us know


There are a few non taxable benefits. See the _Revenue's _guide to _BIK _for more on this.

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## brokerman (29 Nov 2006)

Although you pay tax on the health insurance contributions you are entitled to a tax credit for those contributions at 20%.  This, I believe is because when your employer buys the health insurance policy from the supplier they do so at the full amount.  Unlike if you as an individual purchase the health insurance policy, it would be net of tax relief at 20%.  So you should inform revenue you have a Health Insurance BIK and they will give you a tax credit for same


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## ClubMan (29 Nov 2006)

Yes - as I said...


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## ClubMan (8 Jan 2007)

See also this post.


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