Employees do you know when your employer pays or partly pays medical insurance on your behalf you do not get Tax Relief at Source (TRS)?
When you pay your own medical insurance premium you automatically receive tax relief at the standard rate of tax, currently 20%. When your employer pays or partly pays medical insurance on your behalf you will not have been allowed Tax Relief at Source. The good news is you are entitled to the relief when your employer has paid the medical insurance on your behalf but you have to claim the relief due from Revenue.
Individual Paying Medical Insurance:
|Tax Relief at Source:||€200|
|Cost to Individual:||€800|
Employer Paying Medical Insurance:
|Tax Relief at source (employer pays this to Revenue through Tax Return)||€200|
|Benefit in Kind||€1,000|
Using the example above although the employer has only paid €800 to the medical insurance provider the employee will pay benefit in kind of €1,000.
If your employer pays or partly pays your medical insurance you should contact your local tax office to ensure you are receiving the tax relief.
Details can also be found in the help file for Thesaurus Payroll Manager and BrightPay.