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 Post subject: Processing Maternity
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Maternity Benefit is a Social Welfare payment.
Maternity Benefit is not regarded as income for the purposes of the Income Tax Acts and should be disregarded for all tax purposes.

Maternity Pay, an additional payment by the employer, is taxable.
Some employers will continue to pay their employees on maternity pay, in full. In this case the employee submits their Maternity Benefit to their employer. The Maternity Benefit portion is not taxed or PRSIed, but the 'Top up' maternity pay, should be taxed and PRSIed.

See this document for more information:
http://www.revenue.ie/index.htm?/leafle ... nefits.htm

To set this up in Payback,
Scenario One - Employee Keeps the Maternity Benefit and Employer does not pay any extra

This should not be processed in the Payroll. Either Process the pay as zero, or skip the Payments while the employee is on leave

Scenario Two - Employee gives the Maternity Benefit to the employer, and the Employer then pays the employee

1. In the Employee Screen, select the employee
2. Click the 'Elements' tab
3. Click the elements grid and put Maternity Benefit in the description box.
4. In the amount column, put the amount of Maternity Benefit.
5. Click the Details>> button at the top right of the elements grid
6. Make sure that 'Tax' and 'PRSI' are unticked
7. Click 'Update Employee' to save your changes.

Scenario Three - Employee gives the Maternity Benefit to the employer, and the Employer then pays the employee. The employer also tops up the payment.

1. In the Employee Screen, select the employee
2. Click the 'Elements' tab
3. Click the elements grid and put Maternity Benefit in the description box.
4. In the amount column, put the amount of Maternity Benefit.
5. Click the Details>> button at the top right of the elements grid
6. Make sure that 'Tax' and 'PRSI' are unticked
7. Click the next row down in the elements grid and put Maternity Pay in the description box.
8. In the amount column, put the amount of maternity pay you are paying the employee.
9. Make sure that both 'Tax' and 'PRSI' are ticked. (click the Details>> button at the top right of the elements grid)
10. Click 'Update Employee' to save your changes.

Scenario Four - Employee Keeps the Maternity Benefit, or is not entitle to Maternity Benefit. The Employer pays maternity pay.
This payment is treated like a normal salary payment and is fully taxed and PRSIed.

1. In the Employee Screen, select the employee
2. Click the 'Elements' tab
3. Click the elements grid and put Maternity Pay in the description box.
4. In the amount column, put the amount of maternity pay you are paying the employee.
5. Make sure that both 'Tax' and 'PRSI' are ticked. (click the Details>> button at the top right of the elements grid)
6. Click 'Update Employee' to save your changes.

More information about maternity benefit can be found here;
http://www.citizensinformation.ie/categ ... ty_benefit


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 Post subject: Re: Processing Maternity
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Posts: 241
Re the taxation of Maternity Benefit, Adoptive Benefit and Health & Safety Benefit with effect from 1 July 2013

Revenue have now confirmed that they are proceeding with their plans to tax these payments by reducing employees’ tax credits and cut-off points. Employers/pension providers will be advised of the adjusted tax credits and cut-off points on employer tax credit certificates (P2Cs).

We will be releasing an update to handle this before 1 July 2013.
Please note that this change only effects payments made after 1 July 2013.


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