Taxable Benefits
The following National Insurance and Social Security Benefits are taxable”
- Sickness,
- Maternity,
- Pensions and
- Unemployment
Claims on Contributions Paid on Behalf of Employee
An employer may claim as a deduction that portion of National Insurance Contributions that the employer paid on behalf of an employee.
If I received NIS benefits (sickness, unemployment, maternity) and paid the amount to my employer, how is that treated?
The NIS benefit(s) should be deducted from your salary in the month it was received. If the benefit is more than the current salary, it should be allocated in the months following until fully accounted for.
Example
Jason went on sick leave effective July 1, 2020-December 14, 2020, however he was still paid by his employer for the period whilst on leave. He then received funds from NIS for the period of sick leave totalling $6,000. Jason should return the cheque/amount to his employer.