Medical Insurance - One-Off

BENEFIT IN KIND – MEDICAL INSURANCE (ONE-OFF)

IT IS IMPORTANT TO READ THE FOLLOWING NOTES CAREFULLY BEFORE PROCEEDING.

IMPORTANT NOTES ON BENEFIT IN KIND

PAYE, USC & PRSI must be operated by employers in respect of the taxable value of most benefits in kind and other non-cash benefits provided by them to their employees. The amount to be taken into account is referred to as "notional pay".

SMALL NON-CASH BENEFITS NOT EXCEEDING €250

Where an employer provides a small non-cash benefit (that is a benefit not exceeding €250) PAYE, USC & PRSI need not be applied to that benefit. No more than one such benefit given to an employee in a tax year will qualify for such treatment. Where a benefit exceeds €250 in value the full value of the benefit is subjected to PAYE, USC & PRSI.

Benefit in Kind on Medical Insurance

Medical Insurance

In the case of medical insurance premiums, the cost to the employer is based on the Gross invoiced premium before TRS (Tax Relief at Source). The employer refunds the TRS to Revenue.

Processing Benefit in Kind on Medical Insurance (One-Off) in BrightPay

To access this utility go to Employees, select the employee in question from the listing and click Benefits on the menu toolbar, followed by Medical Insurance > One-Off.

1) Description - enter a description of the medical insurance e.g. provider name.

2) Premium – enter the premium amount of the medical insurance being provided.

3) Date - enter the date that the benefit has been provided.

4) Employee contribution - enter any amount made good by the employee directly to the employer towards the cost of providing the medical insurance.

5) Click Save to save the Benefit In Kind entry.

The 'Notional Pay' will be added to the employee's gross income in the relevant pay period to ensure that the correct PAYE, Universal Social Charge and PRSI are charged.