During 2012, Revenue issued notifications advising employers that the treatment of Illness Benefit will change from 1st January 2013.
From 1st January 2013, the employer will be responsible for collecting PAYE due on Illness Benefit issued to employees, without exception. There is no alternative treatment or option but for the employer to calculate and collect the PAYE regardless of whether or not:
The employer should assume the employee is in receipt of Illness Benefit once the period of illness exceeds three consecutive days and start to account for Illness Benefit in this first pay period. The employer should assume the employee is in receipt of the full €188 until notified otherwise.
In the majority of cases the employee’s tax credit and SRCOP will cover the PAYE payable on the Illness Benefit within each pay period.
BrightPay includes a dedicated Illness Benefit feature to automate the process of taxing the Illness Benefit for the employer. It is important that users access and use this feature for any Illness Benefit issued to an employee from 1st January 2013 in the very first pay period in order to:
Need help? Support is available at 01 8352074 or [email protected].