How to Process Disabilty Benefit
To handle Disability Benefit for Irish payroll when the employer pays the employee and the employee gives the cheque(s) to the employer.
N.B. Social Welfare payments are not subject to Income Levy
The Payroll Administrator need to set up three new pay elements:
Disability Addition Taxable – Gross Addition, subject to Tax but not PRSI
Disability Deduction Taxable – Gross Deduction , subject to Tax and PRSI
Disability Addition Net – Net Addition, subject to neither Tax nor PRSI
First Six Weeks or 39 Working Days:
Salary / Basic paid as normal
Amount of Disability cheque entered as a Gross Deduction
Amount of Disability cheque entered as a Net Addition
Result: […]