Payroll – Treatment of Taxable Illness Benefit

Revenue issued a notice for employers operating payroll advising that from 1 January 2012 all employees’ taxable illness benefit should be included with earnings. However, where employers have decreased tax credits and tax cut-off points rather than including the benefit as part of taxable pay, this approach can be continued for 2012 only.  Revenue has now issued eBrief No. 37/12 which covers the treatment of taxable Illness Benefit paid to PAYE employees by the Department of Social Protection (DSP).

For more details on this please contact CAG Chartered Accountants