Illness Benefit & Occupational Injury Benefit paid by the Department of Social Protection (DSP) to PAYE workers is to be included by employers with taxable pay.
DSP notifies employers of the taxable amount of Illness/Occupational Benefit and of any changes to the amounts. In the past these notification letters have been posted to employers. With effect from 14th April 2014 DSP are using Revenue’s ROS Inbox facility to deliver notification letters directly to ROS registered employers. This change helps to ensure that employers are in a position to calculate the correct amount of tax payable.
Illness & Occupational Injury Benefit continue to be exempt from USC and PRSI.
All queries relating to the payments should be directed to DSP.
Full details regarding the taxation of Illness & Occupational Benefit can be found in The Employer’s Guide to PAYE.
Help on entering Illness/Occupational Injury Benefit can be found in the Online Help for Thesaurus Payroll Manager and BrightPay.