Maternity Benefit is taxable in Ireland since 1st July 2013, but remains exempt from PRSI and USC. Adoptive Benefit and Health and Safety Benefit are also taxable since 1st July 2013.
Revenue has advised that the employee’s tax credit certificate (P2C) will issue on the Week 1 basis when Revenue receives details of the payments from the DSP.
However it would seem that in some situations P2Cs have issued incorrectly on the cumulative basis. Employers should check before importing P2Cs from ROS to ensure that this does not occur. The impact from an employees point of view is that they would possibly end up owing money to revenue as the credits and SCOP would be lower that the original amounts put in at the beginning of the tax year and because the cert has been issued on a cumulative cert it would look for the extra tax as soon as the employee is due payment again . Its bad enough that women have to pay tax on their maternity payment without ending up with a tax bill in error aswell !