Use this process when:

• The company receives illness benefits from the Department of Social Protection
• The company pays the employee their normal or reduced wages

Record the illness benefit as a non-taxable payment. Don't claim tax on illness benefit payments. To process this in Sage 50 Payroll Ireland, you need to set up the illness benefit, and then record it on a timesheet.

If the employee keeps the illness benefit and doesn’t receive wages, you need to follow a different process:

• Record illness benefit when the employee keeps payments

1. Go to Company/Payroll, then select Payments.
2. Select New.
3. In Title, enter ILL ER NT.
4. In type, select Illness Benefit.
5. In Illness Benefit Type, select Employee gives Illness Benefit to Employer.
6. Clear Tax.
7. Select Save, then Close.

You can now enter the illness benefit on a timesheet.