Mums baffled by tax on maternity
Published 27/07/2014 | 02:30
Almost one in five mums have no idea that they have to pay tax on maternity benefit, according to a new survey.
The survey, by the online jobs website, RecruitIreland.com, also found that almost half of mums are confused about how the tax on maternity pay works.
In Budget 2013, Finance Minister Michael Noonan announced that maternity benefit would be taxed from July 2013.
Most new mums are entitled to state maternity benefit of €230 a week - before tax.
But the Revenue Commissioners will readjust the tax credits (which reduce the amount of tax paid on income) of PAYE working mums to ensure they pay the tax on maternity benefit. Revenue will also reduce the amount of money these mothers can earn before getting hit for the higher rate of tax.
So while mums will still see a maternity benefit of €230 a week being paid into their account, their pay packages over the year will work out slimmer to reflect the tax to be paid on maternity benefit.
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