Jun 2013

4


Jun 2013

1

Taxation of Maternity Benefit, Adoptive Benefit & Health & Safety Benefit

From 1st July 2013 Maternity Benefit, Adoptive Benefit & Health & Safety Benefit payable by the Department of Social Protection will be taxable in full.  These payments will be taxable but will not be subject to USC or PRSI.  

The Revenue Commissioners have confirmed that employees in receipt of Maternity Benefit, Adoptive Benefit or Health & Safety Benefit will have their tax credit and standard rate cut-off point reduced to reflect the benefit they have received.  As the benefit will be taxed by Revenue and not at source the recipients will continue to receive the same payment from the Department of Social Protection. 

Employers will be advised of the adjusted tax credits and standard rate cut-off points on the tax credit certificates (P2C’s).  As the benefit will be taxed by reducing the employee’s tax credits and standard rate cut-off point, employers are NOT to include figures for the benefit on Revenue forms i.e. P45, P60 or P35L.

Bright Contracts – Employment contracts and handbooks.
BrightPay – Payroll Software

Posted byAudrey MooneyinPAYEPayroll SoftwarePRSI