While on maternity leave, if an employee keeps the welfare payments paid by the Department of Social Protection (DSP) and also receives pay from your company, you must record the employee's reduced taxable salary on your payroll. Don't record their maternity welfare payments.

Revenue claims all tax relating to maternity benefit directly from the employee by reducing their yearly tax credit and cut off point.

Reduce the employee's gross pay

You receive notification from Revenue of the reduced credits when you Retrieve Revenue Payroll Notifications (RPNs). To record this you need to reduce the employee's gross pay by the amount of the maternity benefit and just enter that amount on the timesheet.