An Illness Benefit is payable by the Department of Employment Affairs and Social Protection (DEASP) when a person is unable to work due to an accident or illness, subject to that person having made the appropriate PRSI contributions. Regardless of whether or not an employee receives payment from their employer, they are still entitled to claim an Illness Benefit if they have made the qualifying PRSI contributions.
As of 1 January 2018, Illness Benefits are no longer taxable.
SimplePay has a built-in item to accommodate the special tax and reporting requirements related to an Illness Benefit (Illness Benefits are excluded from Gross Pay).
To add the Illness Benefit item, you should follow these steps:
- Go to an employee’s profile and click on Add (next to Payslip Inputs) > Illness Benefit.
- Enter the Amount of the Illness Benefit.
- Click Save.