Taxation of Illness Benefit

J

johnnys

Guest
Hi,

Have a question about taxation of illness benefit. The company has an employee that was injured during work and was out of work for three months. Company continued to pay this employee for the three months as normal. At the end of the three months he came back to work and gave the company his social welfare cheque for approx €3,000. What do we do with this? Do we give him a refund of tax on this at his marginal rate? How should we treat it in the payroll system? I understand that the first six weeks of the benefit used to be exempt from tax - is this still the case?

Thanks,

John
 
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