Taxation of Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit

    Maternity LeaveEmployers/pension providers are reminded that Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit payments paid by DSP (unlike Illness Benefit and Occupational Illness Benefit), are not to be included with pay.

    Individuals who are in receipt of these payments and who pay their tax through the PAYE system will have their annual tax credits and cut-off point reduced by the taxable amount of these payments. Employers/pension providers are advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).

    Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit are exempt from USC and PRSI.

    Full instructions can be found in the Employer's Guide to PAYE.

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    Topics: Blog, Maternity Benefit, Maternity Leave, News

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