Taxation of Maternity Benefit

 
Maternity Benefit is now standardised to €235 per week for claimants, this will increase by €5 a week from the end of March 2018 as announced in Budget 2018.

Maternity Benefit continues to be subject to PAYE as announced in the 2013 Budget. This tax will be collected through the reduction of the individual's tax credits and cut off points by Revenue and will not be deducted by the employer.
 
If the employee receives the benefit payment, it does not go through the payroll. If the employer receives the benefit to pass on to the employee, it should be processed as a non-taxable addition.
 
Please note, it is extremely important that employers import/apply the new Tax Credit Certificate/P2C file immediately upon receipt.

Need help? Support is available at 01 8352074 or thesauruspayrollsupport@brightsg.com.

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