Changes to Illness Benefit and Occupational Injury Benefit
The Department of Social Protection (DSP) issued notification letters regarding Changes to Illness Benefit and Occupational Injury Benefit
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.
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