Employee going on Maternity Leave

Hi Guys

I have a girl going on Maternity leave and I want to pay her, her full wages. But wat is the most cost efficent way for the company to do it.

My options seem to be

a. Pay her full wages as normal and me lodge the cheque from the social welfare into company account.

b. let her keep the social welfare cheques and me pay the difference.

As Im not sure if she will return after her leave, would option b be the best as I would only be paying tax on the difference between her social welfare cheque and full wage then if she returns she will get the unused part of her paye.

I want to do the best for my employee but I also want to do the best for my company any advise would be brillant.

Regards
A

Option B its clean and most convenient for both parties

B. Lower her gross by the value of the payments. There is no PAYE or PRSI due on Maternity payments.

Towger said:

B. Lower her gross by the value of the payments. There is no PAYE or PRSI due on Maternity payments.

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Yep, that's the best option.

Purple said:

Yep, that's the best option.

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It is a great option, she ends up with more net pay on Maternity Leave than when working and the employer saves Employer PRSI