Illness Benefit and Occupational Injury Benefit notification letters from the Department of Social Protection (DSP)

Revenue have instructed employers that all taxable Illness Benefit and Occupational Injury Benefit payments paid to PAYE Employees by the DSP are to be included with taxable pay.

DSP notifies employers of the taxable amounts of Illness/Occupational Benefits and of any changes to these amounts. Up to now these notification letters were posted to employers. With effect from 14 April 2014, the DSP will use Revenue’s ROS in-box facility to deliver the notification letters directly to all ROS enabled employers. This will help to ensure that employers are in a position to calculate the correct amount of tax payable in a timely manner.

Illness and Occupation Injury Benefit payments are exempt from USC and PRSI.

All queries relating to the payments should be directed to the DSP.

Full instructions regarding the taxation of Illness Benefit and Occupational Injury Benefit can be found in the Employer’s Guide to PAYE.

Taxation of Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit

Employers/pension providers are reminded that Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit payments paid by DSP (unlike Illness Benefit and Occupational Illness Benefit), are not to be included with pay.  Individuals who are in receipt of these payments and who pay their tax through the PAYE system will have their annual tax credits and cut-off point reduced by the taxable amount of these payments.

Employers/pension providers are advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).

Maternity Benefit, Adoptive Benefit, and Health & Safety Benefit are exempt from USC and PRSI.

Full instructions can be found in the Employer’s Guide to PAYE.

P30/P35 Local Property Tax (LPT) employee deduction at source

Where Employers receive instruction by way of a P2C to deduct LPT in respect of an employee, they (the employer) must deduct this amount and submit it on the P30. Failure to act on the Revenue instruction may, in addition to being held liable for the amount due, lead to enforcement action, the imposition of a penalty and/or prosecution. Employers must also return details of the amounts deducted on the annual P35 declaration as well as the individual employee amount on the P35L.

When filing the P35 Return, employers are reminded that they should use the most up to date version of the Return in ROS.  The Employer Customer Service Unit provides information and support to employers.

The Employer Customer Service Unit provides information and support to employers.

Contact details as follows:

Telephone: 1890 25 45 65 (+ 353 67 63400 if ringing from outside the Republic of Ireland)

E-Mail: employerhelp@revenue.ie