Illness benefit deducted off wage -

I

Izolda

Registered User
Messages
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HI all, I wonder if anyone could clarify few things for me pls.
i ll give u a bit of an overview of the situation - i have been off sick from work, following an accident, for the past 7 months and i am now fit to return to work. I perceived a wage for the first 2 months of my illness and nil afterwards.
I signed up for illness benefit 2 months after the accident, although i am aware this is not the norm, however illness benefit was backdated to the previous 2 months, despite informing social welfare that i was at the time in receipt of a wage. As i am now returning to work and back to payroll they now want to deduct my illness benefit that wasn't deducted in JUL/AUG, off my January wage.
Can illness benefit be deducted on a different tax year?
As i received illness benefit for approx 7 months how are my tax credits affected?
Cheers
 
1. The Illness Benefit should have kicked in seven days after the accident on which you should have claimed. Your employer will have to refund the Dept of Social Welfare for the "overpayment" which probably means you'll be deducted.
2. Illness Benefit can be deducted in a different tax year.
3. The Revenue Commissioners will have information of any Illness Benefit you were paid and even when it was paid. You will be taxed accordingly.
All your tax liabilities will be summarised in your yearly summary.
 
Leper said:
1. The Illness Benefit should have kicked in seven days after the accident on which you should have claimed. Your employer will have to refund the Dept of Social Welfare for the "overpayment" which probably means you'll be deducted.
2. Illness Benefit can be deducted in a different tax year.
3. The Revenue Commissioners will have information of any Illness Benefit you were paid and even when it was paid. You will be taxed accordingly.
All your tax liabilities will be summarised in your yearly summary.
Click to expand...
Thanks a lot :)
 
Hi work in the hse. I was out of work for 3 months. I have just came back to work now . I had a back sugery. I was getting illness benefit for 3 month. I was granted trr. In my first wages I was given 4500 and the illness benefit too money if me. I was left with 100. Can any give me information on this subject. Thank u
 
Hi Liverpool1982,

Welcome to AAM.

You should send an e-mail to your HR or Payroll Dept who should be able to explain your deductions to you. Getting it in writing may help you to understand it better as your explanation above is quite hard to understand.
 
Yes they can

In short 40% is repaid

The mathematical approach is to reduce your rate band by an annualised amount of the illness benefit so you pay 20% more tax on the amount received plus 20% off your credits so 40% in total and this will last the duration that you were on illness benefit

Eg round figures here

Let's say you got 220 illness benefit
40% is 88 quid
If someone was on illness benefit for 10 weeks (regardless of the month and year)
When they return to work their wages will be down 88 quid per week to collect the PAYE tax of 40% of illness benefit back
(Assuming you are in the 40% bracket)
 
Payroll should have the ability to spread your deductions over a few months to prevent one month with a very low salary, but you need of course to be aware of it in advance and ask before the payroll is run. The other thing you can do is ask for an advance of next months salary, some companies will oblige in that manner.
 
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