You are here: Home Tax treatment and Reporting of Illness Benefit paid by the Department of Social Protection News Shots Tax treatment and Reporting of Illness Benefit paid by the Department of Social Protection Tax treatment and Reporting of Illness Benefit paid by the Department of Social Protection

Why Outsource?

Outsourcing your business to Softcom delivers significant cost savings to your company in both the short and long term. If you need a specific requirement we will..
Read More

Online Expense Manager

Keep both your inhouse staff and mobile staff streamlined and cost efficient with Softcom's Expense Manager. Submitting has never being easier...
Read More

Online Payslips

Imagine the flexibility to access and control your online payslips over the web without the need of paper distribution. Our online web payslip product delivers ease of ...
Read More

Payroll Outsourcing

Our Managed Payroll Outsourcing service is our market leading solution and can be customised to suit your specific managed payroll requirements...
Read More

Tax treatment and reporting of Illness Benefit paid by the Department of Social Protection

Employers are reminded that with effect from 1 January 2012, all taxable Illness Benefit is to be included with earnings.
The option to reduce Tax Credits and Cut-Off Points no longer applies. Full instructions can be found in the Employer’s Guide to PAYE. Illness Benefit continues to be exempt from USC and PRSI.


Universal Social Charge (USC)

With effect from 1 January 2012, the deduction of USC changed to a cumulative basis, similar to the manner in which PAYE is deducted. Employers are urged to familiarise themselves with the contents of the USC Frequently Asked Questions (FAQ) document which is updated on an ongoing basis. www.revenue.ie/en/tax/usc/universal-social-charge-faqs.pdf


USC Exemption on P2Cs

Where Revenue determine that the employee/pensioner’s total annual earnings (from all USC-able sources) will not exceed
the USC exemption threshold of €10,036, the USC exemption will be stated on the P2C. However, where an employer
determines that a USC-exempted employee/ pensioner’s pay for USC purposes will in fact exceed the €10,036 threshold,
in order to avoid a situation where the employee/pensioner has an under deduction of USC at the end of the year, we would
ask that the employer/ pension provider advise the employee/pensioner to contact their local Revenue office to have a revised
Tax Credit Certificate issued.


Obligation to keep a Register of Employees

Employers are advised that under the Income Tax (Employments) Regulations 2012, which came into force on the 18th July 2012, all employers are required to keep a Register of Employees (in paper or electronic format) (Regulation 8) showing the name, address, Personal Public Service number and date of commencement/cessation of all employees. Employers are reminded
that they must notify the name and address of all employees to Revenue within 9 days (Regulation 7).


The Employer Customer Service Unit provides information and support to employers.

Contact details as follows:

Telephone: 1890 25 45 65 within Republic of Ireland
+ 353 67 63400 if ringing from outside the Republic of Ireland

E-Mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

Softcom does not accept any responsibility. The above is for reference ONLY. Please consult the relevant Department before making any decisions.

RSSLinkedInTwitter