Taxation of Maternity Benefit, Paternity Benefit, Parent’s Benefit, Adoptive Benefit and Health and Safety Benefit.

Revenue eBrief No. 102/20

Taxation of Maternity Benefit, Paternity Benefit, Parent’s Benefit, Adoptive Benefit and Health and Safety Benefit.

Tax and Duty Manual Part 05-05-31 – Taxation of Maternity Benefit, Paternity Benefit, Parent’s Benefit, Adoptive Benefit and Health and Safety Benefit – has been updated. Parent’s Benefit has been added to the list of chargeable benefits under Section 126(2A) of the Taxes Consolidation Act (TCA) 1997 as amended by Section 37 Parent’s Leave and Benefit Act 2019.

Extract:

1. Introduction

Section 126(2A) of the Taxes Consolidation Act (TCA) 1997, as amended, provides that the following benefits payable by the Department of Employment Affairs and Social Protection (DEASP) are chargeable to income tax:

• Maternity Benefit
• Paternity Benefit
• Parent’s Benefit
• Adoptive Benefit
• Health and Safety Benefit

2. Benefit

Parent’s Benefit is a payment to an employed or self-employed individual who is on parent’s leave from work and who satisfies the relevant PRSI contribution conditions. It is paid in respect of any child born or adopted on or after 1 November 2019. This benefit is in addition to existing maternity benefit and paternity benefit. Parent’s Benefit can be paid for either two consecutive weeks or two separate weeks within the first year of the child’s life.