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| Illness Benefit (For years prior to 2012) http://paybackieforum.azurewebsites.net/viewtopic.php?f=3&t=116 |
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| Author: | eamon [ ] |
| Post subject: | Illness Benefit (For years prior to 2012) |
Illness benefit used to be called 'Disability Benefit'. Information about this scheme can be found here: http://www.citizensinformation.ie/en/so ... nefit.html There 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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