Illness benefit used to be called 'Disability Benefit'. Information about this scheme can be found here:
http://www.citizensinformation.ie/en/so ... nefit.htmlThere are various scenarios that have to be catered for:
- The Employee keeps the illness benefit cheque (You should always assume that the benefit is received unless notified to the contrary by the Dept of Social and Family Affairs)
- The Employee gives the cheque to your company
- The employee has been receiving illness benefit for more than 36 days (Illness benefit becomes taxable after 36 days, but not PRSIable.)
Example one
This example is for 3 taxable weeks of illness benefit and 1 non-taxable week of illness benefit at €188/week (Four weeks pay in total). The employee is keeping the illness benefit cheque (the company did not receive a cheque), so this payment is going through the payroll just so that it can be correctly taxed. You will have to put in two entries, a taxable portion and a non-taxable portion. The €752 amount is non taxable and non PRSIable. The €188 amount is taxable but not PRSIable.
Please set up the following elements (There is no need to click the View... button)
Code:
Description Amount Type Tax PRSI USC
Illness Benefit 752 Social Welfare N N N
Illness Benefit 188 Social Welfare Y N Y
These deductions should also be set up:
Code:
Description EE% EE Amount Type Tax PRSI USC
IB Advance N 752 No Balance Y Y Y
IB Advance N 188 No Balance N Y N
As always, we advise that you check the tax treatment with a tax professional.
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