Illness Benefit - General

Illness Benefit is subject to PAYE only, it is not subject to USC or PRSI.

Since 1st January 2018, employers are no longer required to tax Illness Benefit through the payroll.

Revenue adjust the employee's tax credits and cut off points via the Revenue Payroll Notification (RPN). Revenue receive real-time interfaces of taxable Illness Benefit from the Department of Employment Affairs and Social Protection (DEASP).

While employers are no longer responsible for taxing Illness Benefit through the payroll, it is extremely important to check for RPNs before each pay period.

Prior to 1st January 2018, employers were responsible for collecting PAYE due on Illness Benefit issued to employees.