Solution Properties
Solution ID:
200427112358682
Last Modified Date:
Wed Mar 23 14:26:03 UTC 2022
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Recording maternity benefit: If your company gets the welfare payments and pays the employee their normal wages
Description

When your company gets the maternity welfare payments paid by the Department of Social Protection and pays the employee their normal wages, you must record the maternity benefit as a non-taxable payment on your payroll.

You don't need to claim any tax on the welfare payments. Revenue claim all tax relating to maternity benefit directly from the employee by reducing their yearly tax credit and cut off point:

In 2018 and earlier

You receive notification from Revenue of these reduced credits through an amended P2C tax certificate. If you use Revenue Online Service (ROS), you can download the amended P2C file from their website. You can then import the P2C file directly into Sage Payroll using the Tax Credit Import option.

In 2019 onward

You receive notification from Revenue of these reduced credits through Retrieving RPNs.

Cause
Resolution
Set up a non-taxable maternity payment
  1. On the menu bar, click Company/Payroll then click Payments.
  2. Click New, then set up the maternity payment as follows:

    Title Type the name of the payment, for example, maternity.
    Type Click Maternity Benefit.
    Apply Pension Related Deduction If the payment is subject to pension related deduction (PRD), select this check box. If you're unsure, please contact the Department of Social Protection.

    This option is only available when you enable the PRD feature within your software.
    EHECS Type Click Not Relevant.

    This option is only available when you enable the Central Statistics Office (CSO) feature within your software.
  3. Click Save, then click Close.
Process maternity pay on timesheet
  1. On the menu bar, click Processing then click Time and Pay.
  2. Under Entry mode, select Random then click Continue.
  3. Next to the Employee box, click browse  and click the relevant employee.
  4. Locate the employee's main payment*, then enter the full amount/hours in the Hrs/Val column.

    * An example of a main payment is salary or basic hourly pay.

  5. Locate the maternity payment, then enter the maternity amount in the Hrs/Val column.
  6. If applicable, enter any other pay details you want to record. For example, overtime or holiday pay.
  7. To preview the employee's payslip, click Payslip.
  8. Check the employee's pay details are correct.

    If not, close the Payslip Preview window and repeat steps 4 to 8.

  9. Click Save, then click Cancel.
Watch the video
[BCB:213:Limitless - Sage Payroll (Ireland) - Statutory Payments:ECB]
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