Valuation of benefits

Payment of medical insurance

You may pay medical insurance premiums on behalf of an employee. This is a taxable benefit for your employee. The value of the benefit is the gross value of the insurance premium. This is the value before any Medical Insurance Relief, granted by way of Tax Relief at Source (TRS), is deducted from the premium.

Generally, you must pay the value of any medical insurance relief to Revenue. You may claim a deduction for the gross value of the policy paid for Case I or Case II purposes.

Payment of medical insurance where employer is an insurer

You do not need to pay the value of any medical insurance relief to Revenue if you are:

  • a medical or dental insurer
  • a tied agent of a medical or dental insurer
  • an employer connected to a medical or dental insurer or a tied agent.

You may not claim a deduction for the gross value of the policy for Case I or Case II purposes. Instead, you may claim a deduction for any administrative costs actually incurred in providing a medical insurance policy for your employees.

In this scenario, a tied agent refers to any insurance agent who has entered into an agreement with a medical insurer. The agreement either prevents or severely restricts their ability to sell medical or dental insurance policies offered by other medical or dental insurers.

If you are unsure if you are connected with a medical or dental insurer or a tied agent, please contact your Revenue office for further assistance.

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