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.htmTo set this up in Payback,
Scenario One - Employee Keeps the Maternity Benefit and Employer does not pay any extraThis 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 employee1. 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
unticked7. 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
unticked7. 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