While on paternity 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 the paternity welfare payments.

Revenue claims all tax relating to paternity 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 Micropay using the Tax Credit Import option.

In 2019 onward

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