Recording paternity benefit: If the employee keeps the welfare payments but doesn't receive any pay from your company
Description

In cases where the employee keeps the paternity benefit, you shouldn't save any timesheets during the periods of their paternity leave. This is because your company is not making any payment to the employee.

When an employee is on long term absence, it's best Practice to suspend the employee off the payroll. This disables their employee record and excluded them from any future payroll processing. When the employee returns to work with your company, you must reactivate their employee record.

When the employee returns back to work, you don't need to record the maternity benefit payments in your payroll or claim any tax on these payments. Revenue claims all tax relating to maternity benefit directly from the employee by reducing their yearly tax credit and cut off point:

Cause
Resolution
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 Micropay using the Tax Credit Import option.

In 2019 onward

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

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