Taxation of Illness Benefit

desmondmoore

My wife gets 4 weeks paid leave/year on certified sick leave. She had an operation last year and was off work for 12 weeks. During her first 4 weeks, the illness benefit she obtained she gave to her work and they paid her salary. For the remaining 8 weeks, she was not paid by her work and she kept the illness benefit.

Is she taxed only on that part of illness benefit she keeps?

What is the "the total amount of taxable Illness Benefit" (under (A) PAY item 4 on her P60?

How is that related to her illness benefit? Is it the part she keeps or the total amount received or something else?

Is the Illness benefit amount included in USC calculations?

scheister

here is the Revenue leaflet on Illness benefit

http://www.revenue.ie/en/tax/it/leaflets/it22.html

The illness benefit its taxable at source so for the 4 week the company was paying her they would have calculated her PAYE on the full amount. But the illness benefit was not subject to USC and PRSI