PRSI and Illness Benefit

lughildanach

Registered User
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120
Submitted a tax return online with ROS today. Client's income was PAYE employment at Class A0, a miniscule amount of profit from self-employment (150 euro) and a payment of approx 3k in Illness Benefit. Combination of the Illness Benefit and employment income does not exceed the amount where income tax would be payable.

My understanding is that Social Welfare payments are not chargeable for PRSI, and there is no PRSI obligation on the PAYE employment as its below the threshold for employee contribution. However, the column A calculated by ROS appears to take the Illness Benefit into account and calculates a PRSI obligation of 4% of the Illness Benefit total. I've submitted correction in column B and claimed zero chargeable along with an explanation.

Anyone else have this problem? Or does the Illness Benefit somehow become chargeable in these circumstances?
 
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