18/05/2013
17 May 2013
Taxation of Maternity Benefit, Adoptive Benefit and Health & Safety Benefit
Employers, agents and payroll practitioners should note that Maternity Benefit, Adoptive Benefit and Health & Safety Benefit, payable by the Department of Social Protection (DSP) from 1 July 2013 will be taxable in full. However, USC and PRSI will not apply to these benefits.
As part of the ongoing exchange of information arrangements between Revenue and DSP, Revenue will receive the payment details which will be updated onto our records.
By way of administering the taxation of these benefits, Individuals who pay their tax through the PAYE system will, where possible, have their annual tax credits and cut-off point reduced by the amount of these payments.
Employers/pension providers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).