Health Insurance BIK

LegacyUser

Hi

I currently receive Health Insurance as part of remuneration package with my employer.

However they recently did a reconciliation with the health insurance provider and as a result realised Payroll were never charging Health Insurance BIK on my pay slip.

The day before I was due to be paid I received my pay slip. I see that they processed a payment amounting to €1600 backdating the BIK I didn't pay for the last 6 months as a result my monthly pay was reduced by €800.

I received no forewarning that this would done and when queried they acknowledge the mistake. They offered an advance on my following month's pay.

However my question is should the employer not cover this or at least in part given it was their mistake which meant this was not originally deducted from my pay in more manageable amounts.

antix80

That's unfortunate.

But income tax is your own responsibility, and in fairness they noticed the mistake in the same tax year.

Take the advance that's offered and agree a payment schedule of a manageable amount per month.

Don't forget to claim 20% tax relief on the BIK. I believe you can do this online. That should take some of the sting out of it.

ibarelycare

You received the benefit so you do owe the tax on it unfortunately. I think it's very bad form that they didn't get in touch with you to forewarn you. You could have requested that the cost of the untaxed benefit was split out over a few months (although with Real Time Reporting this could be a questionable practice).

Just FYI the tax credit you can claim is max €200 (20% of 1000) if the health insurance is just being paid for your and no spouse/dependants. You can request Revenue to apply this straight away, or you could request it in a lump sum if you do a claim after the end of the year.