Record illness benefit
Description

When an employee receives an illness benefit, Revenue collects the related tax directly from the employee. Revenue adjusts the employee’s tax credits through the latest RPN.

Retrieve and apply the latest RPN before you process payroll. 

Use the section that matches your situation.

TIP: If you need to process statutory sick pay (SSP) for any of your employees, check the processing SSP guide.

Cause
Resolution

The employee keeps the illness benefit and receives company pay

Record the employee’s reduced pay only. Don't record the illness benefit payment in Sage 50 Payroll Ireland.


The employee keeps the illness benefit and receives no company pay

Don't save timesheets during the sick leave period. Suspend the employee to prevent timesheets from saving in error. Reinstate the employee when they return to work, then record normal pay. Don't record the illness benefit payment in Sage 50 Payroll Ireland.


The company receives the illness benefit and pays the employee

Record the illness benefit as a non-taxable payment. Record the employee’s normal or reduced pay as usual.


The company receives the illness benefit and pays no wages

Record the illness benefit as a non-taxable payment. Don't record any taxable pay for the employee.


Correct illness benefit recorded in error

Amend each affected pay period in the employee’s year-to-date record. Update the payroll data to reflect the correct treatment.

Steps to duplicate
Related Solutions