When your company gets the maternity welfare payments paid by the Department of Social Protection and pays the employee their normal wages, you must record the maternity benefit as a non-taxable payment on your payroll.
You don't need to claim any tax on the welfare payments. Revenue claim all tax relating to maternity benefit directly from the employee by reducing their yearly tax credit and cut off point:
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 Payroll using the Tax Credit Import option.
You receive notification from Revenue of these reduced credits through Retrieving RPNs.
Title | Type the name of the payment, for example, maternity. |
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Type | Click Maternity Benefit. |
Apply Pension Related Deduction | If the payment is subject to pension related deduction (PRD), select this check box. If you're unsure, please contact the Department of Social Protection. This option is only available when you enable the PRD feature within your software. |
EHECS Type | Click Not Relevant. This option is only available when you enable the Central Statistics Office (CSO) feature within your software. |