Revenue has issued a notice for employers advising that with effect from 1 January 2012 all employees taxable illness benefit should be included with earnings. However, where employers have decreased tax credits and tax cut-off points rather than including the benefit as part of taxable pay, this approach can be continued for 2012 only.

The notice also advises that all aspects of the treatment of illness benefit for 2013 are currently being considered, including the potential implications of the proposals of the Minister for Social Protection on Statutory Sick Pay. Readers will be kept updated on developments in this area.