Illness benefit tax query

[colin79ie]

Hopefully someone here can clarify this for me.

PAYE worker.

Company pays 2 months full pay sick leave. I then have to submit the illness benefit directly to the company. As I understand it the illness benefit is taxable income but exempt from PRSI and USC?

Would this mean that, in comparison to a 'normal' monthly pay packet I would get more net pay? For example, if my gross salary salary is 4000 per month and say 2800 per month net for a normal month, would this 2800 increase if I was off sick, claiming illness benefit for the following month due to the illness benefit part of my salary being exempt from USC and PRSI?

Also, if the above example was 2011 or previous, would the net pay be even more as the first 36 days were exempt from tax?

I may have the wrong end of the stick but I am wondering if I am owed a few euro from the company!

 

[Black Sheep]

Your pay will be the same as it is inclusive of Illness Benefit when you are out sick.

 

[JoeRoberts]

Many companies implement the integration of IB with company sick pay incorrectly.
The proper way should be to ensure no extra accrues to the employee but this is often overlooked or misunderstood by some payroll operators.
Same also happens with integrated maternity pay.

If the company is good enough to supplement your IB then be grateful rather than thinking they owe you something else.