• Illness Benefit is subject to PAYE only, it is not subject to USC or PRSI.
• Employers are no longer required to tax Illness Benefit through the payroll. 
• Instead, Revenue adjust the employee's tax credits and cut off points via the employee's Revenue Payroll Notification (RPN).
• Therefore, you should ensure that you check for updated RPNs before each pay run.

• In addition, since 1st January 2018, Illness Benefit letters are no longer delivered to the ROS Inbox.

   

Action required by the employer in the payroll 

• Amend the employee's hours/basic pay to reflect the period the employee is out sick
• Import the amended RPN file immediately