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Maternity Benefit to be taxed

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    #32
    uli84
    Registered Users Posts: 1,678 ✭✭✭uli84


    Sooo confused-my top up finishes end of Jun and from 1st of July im only getting state maternity benefit will I still get taxed on what i was receiving until End of June?


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    #33
    How Strange
    Registered Users Posts: 6,339 ✭✭✭How Strange


    There's no legislation past yet to enact this stage into law do everything is speculation at the moment. From what I can see if you get your salary top up and benefit then you'll receive around the same as your monthly net salary. It will probably be slightly more as the maternity benefit is not to be subject to prsi and USC.

    If you only get the benefit then you shouldn't be taxed at all as it falls beneath the threshold.

    However, as I said, it's all speculation at the moment.


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    #34
    Zizigirl
    Registered Users Posts: 98 ✭✭Zizigirl


    uli84 wrote: »
    Sooo confused-my top up finishes end of Jun and from 1st of July im only getting state maternity benefit will I still get taxed on what i was receiving until End of June?

    No. You will be better off up until End June as the portion of your wages from state benefit (prob €262 per week) is tax free and wages will reflect this.

    However the money you receive from DSFA from 1st July is subject to tax. It is confusing but the DSFA will not send anything to your employer or deal with taxation. At the end of your maternity you will go back to work and your employer will calculate your wages using cumulative tax credits as normal.

    You will then have two options, one contact revenue and ask for amended tax credit statement, supplying them with information about how much you were receiving from DFSA or wait until 2014 and balance with revenue then.

    Regardless of whether the amount received from Social welfare is under the weekly threshold or not, It will depend on how much people are earning over the course of the whole year whether they will owe anything or not. I know if I end up in your position I will be contacting revenue just before I go on maternity and supplying them with the information then as it would mean I won't end up owing regardless.

    I really don't think it is speculation, I only wish it was, I think this will happen but the 1st July start has lessened the pressure on the government to supply us with full information just yet.

    The only reason I'm aware of this situation is that I claimed welfare during school summer holidays for a good few years and I had the tax issue then.


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    #35
    How Strange
    Registered Users Posts: 6,339 ✭✭✭How Strange


    Zizigirl it is speculation because it hasn't even been passed into law yet. The revenue have no info about it, the social welfare have no info and it's really up in the air as to how it will be treated. Our payroll provider said they have had no instructions yet either. They attend conferences around budget time to find out how the changes for the following year will be treated and up to today they've heard nothing.


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    #36
    LegacyUser
    Registered Users Posts: 166,026 ✭✭✭✭LegacyUser


    I do not get it at all. I have worek on my full salary over 2 years I will not get top up just money from Social Welafare and this almost only half of my salary. I'm scared to death how am I going to survive and thinking about going back to work after 3 month (poor baby of mine) Does it mean I will still be taxed.


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