When running the Validate Payroll Data report, you may receive the following warning:

'Illness benefit (Type "Employee gives Illness Benefit to Employer") has been incorrectly processed for employee XX.'

Illness benefit payments must be set up as non-taxable payments. This is due to changes in the way Illness Benefit needs to be processed from 2018 Read More >

Ensure illness benefit payments are non-taxable

1. Click Company/Payroll then Payments.
2. Locate any payments with a type of 'Illness Benefit' then Edit.
3. Untick the 'Tax' tick box.
4. Click Save and Close.

Check the Payments report

1. Click Reports then Payroll Reports.
2. Within the Payroll tab select 'Payments', then from the 'List' on the right select the Illness Benefit Payment then Preview.
3. If there are any values in the Tax year column, this indicates the payment has been used in the current year and a manual correction will be needed.