Employer receives Illness Benefit payment

  • Illness Benefit is subject to PAYE only, it is not subject to USC or PRSI.

  • Since 1st January 2018, employers are no longer required to tax Illness Benefit through the payroll.

  • Instead, Revenue adjust the employee's tax credits and cut off points via the employee's Revenue Payroll Notification (RPN).

  • Therefore, you should ensure that you check for updated RPNs before each pay run.

  • In addition, since 1st January 2018, Illness Benefit letters are no longer delivered to the ROS Inbox.

 

Action required by the employer in the payroll


Where the employer pays the employee while they are out sick, and the employer also receives the Illness Benefit payment from DEASP directly or indirectly i.e. from the employee:

  • Employer reduces the employee's salary by the value of the Illness Benefit they are receiving so he is merely topping up the employee salary to their normal periodical salary or the alternative as dictated by company sick pay policy

  • Employee claims the DEASP Illness Benefit

  • Employer enters the Illness Benefit payment as a non-taxable addition (taxed by Revenue)

  • Employer must import the amended RPN file immediately

 

 

 

 

  

Need help? Support is available at 01 8352074 or support@thesaurus.ie.

Help2019 Thesaurus Payroll Manager - System Requirements2019 Budget - Employer SummaryPayroll CalendarPayroll DeductionsGetting startedImporting from previous yearImporting from other Payroll SoftwareCompany SetupDigital CertificatesAdd/ Amend EmployeesRevenue Payroll Notifications (RPNs)Processing PayrollPayroll Submission Requests (PSRs)Distributing PayslipsPaying EmployeesCorrectionsRevenue PaymentsReportsProcessing StartersProcessing LeaversBenefit in KindIllness BenefitMaternity BenefitPaternity BenefitPensionsBackup and RestoreCSO2018 Year End GuideHolidaysLeave EntitlementsEmployment LawGeneralGlossary of Terms (Pre 2019)Revenue - Contact Telephone NumbersTransferring Payroll Manager from one PC to anotherThesaurus ConnectGDPREnd User Licence Agreement for Thesaurus Payroll Manager