Maternity Benefit while working reduced Hours

[Bearsandbulls]

Hi all,

My wife job shares and her fortnightly gross income is 1,043. She is currently on maternity benefit which is deducted by her employer.

Does it make sense that considering maternity benefit is 548 per fortnight that my wife receives a net payament of 398 after deductions for tax and state pension.

I would have assumed that her net pay during maternity leave should be 548 per fortnight at a minimum?

Thanks

 

[ClubMan]

I would have assumed that her net pay during maternity leave should be 548 per fortnight at a minimum?

Are you overlooking the fact that Maternity Benefit is taxable?

Taxation of maternity, adoptive, and health and safety benefits

This page explains the taxation of maternity, adoptive, and health and safety benefits

www.revenue.ie

 

[Towger]

If she elected to have the Maternity Benefit paid directly to her (which she should have) she would get 548 into her hand from SW.
If her employer gets it, who know what they are doing with out seeing an actual payslip. There should be no PRSI or USC on Maternity Benefit.

 

[Bearsandbulls]

If she elected to have the Maternity Benefit paid directly to her (which she should have) she would get 548 into her hand from SW.
If her employer gets it, who know what they are doing with out seeing an actual payslip. There should be no PRSI

The below is her payslip. I wasnt aware it was taxable.

or USC on Maternity Benefit.

 

[ClubMan]

That payslip seems to be reducing the normal gross by the amount of the Maternity Benefit payment and then calculating everything on the remainder. So net pay is €398. And MB of €548 (still assessable for income tax) is presumably paid separately (by the Department of Social Protection)?

 

[Towger]

They are reducing her gross by the Maternity Pay, but are not paying it to her.

 

[ClubMan]

They are reducing her gross by the Maternity Pay, but are not paying it to her.

Agreed. So the MB is presumably paid directly to her by the Department of Social Protection? In which case it may be paid gross and tax will have to be accounted for at a later date - possibly at year end when the tax account is rebalanced? Or maybe the tax credits have already been adjusted to account for this? (I was paid Illness Benefit a while back which was paid gross and my credits were reduced to reflect this).