Taxation of Paternity Benefit

Paternity Benefit is now standardised to €240 per week for claimants, this will increase by €5 a week from the end of March 2019 as announced in Budget 2019.

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 via the employee's Revenue Payroll Notification (RPN).

• It is extremely important therefore that employers check for updated RPNs before each pay run.
  
  
• 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.