You own a motor dealership. You pay your employee’s medical insurance policy of €800 (€1,000 less tax relief of €200). You must deduct IT, PRSI and USC on the gross amount, €1,000, from your employee's pay.
This employee is entitled to a tax credit for the gross premium (€1,000 @ 20%) in their Tax Credit Certificate.
You must pay the Colletor-General's Division, the €200 you obtained as tax relief when you paid the medical insurance.