Maternity Benefit hit by PAYE in Budget 2013
In comparison to other years there have been minimal changes to PAYE in Budget 2013. There have been no changes to tax bands or credits.
The real headline from the income tax topic is that Maternity Benefit is now to be subject to PAYE. Maternity Benefit, as with all social welfare payments, will be exempt from the USC. This change will come into effect from 1st July 2013.
The declaration and collection method for this tax has not been specified today by Minister Noonan, however if it is managed in the same manner as Illness Benefit it will be the responsibility of the employer to identify, calculate and remit this tax to Revenue.
By availing of our award winning payroll outsource services, the experienced team at Paycheck Plus will help you meet your obligations regarding the taxation of Illness Benefit & Maternity Benefit for your employees. For more information, speak to one of our Payroll Team today on 041 686 3000 or e-mail PayrollTeam@paycheckplus.ie for futher information.