How to process a maternity benefit in Sage Payroll.
Description
When recording maternity benefit, there are three different possible scenarios. Please see below.
Resolution
In this scenario, you shouldn’t save any pay details during the periods of maternity leave. This is because your company is not making any payment to the employee. In your pay run, for the relevant employee, tick the
Do Not Pay option until they return to work.
When the employee returns back to work, you don’t need to record the maternity benefit payments on your payroll or claim any tax on these payments. Revenue claims 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 RPN certificate. If you use Revenue Online Service (ROS), you can download the RPN file from their website.
When the employee returns, don’t record the maternity benefit payments within payroll. You don't claim any tax on these payments.
Revenue claims all tax relating to maternity pay from the employee. They do this by reducing their yearly tax credit and cut off point.
You receive notification from Revenue of these reduced credits through an RPN certificate.
In this scenario, you will need 2 payment lines on the employee payslip.
Record the maternity benefit as a non-taxable payment. To do this, select Expense then Other expense.
Record the portion you are using to make up the employee salary as a taxable payment.
Read how to Create and manage payments (opens in new tab).
You don't claim any tax on the maternity payments.
Revenue claims all tax relating to maternity pay from the employee. They do this by reducing their yearly tax credit and cut off point.
You receive notification from Revenue of these reduced credits through an PRN certificate.
There are nine public holidays in Ireland each year.
An employee is entitled to either:
- A paid day off on the holiday, or
- A paid day off that month, or
- An extra day’s annual leave, or
- An extra day’s pay
Employees are also entitled to take annual holidays while on maternity leave.
You can add these on when calculating your return date to work.
Africa
Asia
Australia
Canada
France
Kenya
Nigeria
Portugal
South Africa
Spain
United Arab Emirates
United Kingdom
United States
Germany