Revenue Employer Notice - Wage Subsidy Schemes

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Revenue have issued Employer notices on the operation of the Wage Subsidy Schemes, TWSS and EWSS, to participating TWSS employers this week. The details are as follows:

Temporary Wage Subsidy Scheme (TWSS):

The TWSS Scheme, which provided significant supports to employers since 26 March 2020, will cease to operate after 31 August 2020. All payroll submissions received with pay dates on or after 1 September 2020 will not be processed under the TWSS and refunds will not be paid.

For pay dates from 1 September, you are required:

• To return all employees to normal payroll and report normal PRSI classes, not J9 Class
• Not to make temporary wage subsidy payments to your employees Revenue will shortly be publishing guidance on the reconciliation of TWSS.

Employment Wage Subsidy Scheme (EWSS):

On 23 July last, the Government announced the Employment Wage Subsidy Scheme. This provides economy-wide enterprise support to give a flat-rate subsidy to eligible employers based on the numbers of paid eligible employees on the employer’s payroll. The EWSS replaces the TWSS for pay dates on or from 1 September 2020 and is expected to continue until 31 March 2021.

If you wish to avail of the EWSS it is necessary to meet the qualifying criteria and register to participate in the scheme. The general eligibility criteria require that your business experiences, as a result of the COVID-19 pandemic, a 30% reduction in turnover or orders between 1 July and 31 December 2020. Childcare businesses registered in accordance with Section 58C of the Child Care Act 1991 are also included in the scheme.

Under the scheme the following subsidy amounts apply:

Employee Gross Weekly Wage	Subsidy Payable
Less than € 151.50	Nil
From € 151.50 to € 202.99	€ 151.50
From € 203 to € 1,462	€ 203
More than € 1,462	Nil

Employers are required to operate and make their payroll submissions as normal and Revenue will calculate the subsidy payable based on these submissions monthly on the 15th of the following month. The subsidy will be paid to the employer as soon as practicable thereafter.

While employers are required to report and apply the full rates of employer and employee PRSI, on receipt of payroll submissions, Revenue will apply a reduced rate of 0.5% employer PRSI in respect of employees for whom a subsidy is payable i.e. where gross weekly wage is between € 151.50 and € 1,462. Monthly employer PRSI liabilities will be revised accordingly by Revenue and any resulting PRSI credit will be available for offset against future employer PAYE/PRSI liabilities.

Employers eligible for EWSS who were either ineligible for TWSS, or who had employee’s ineligible for TWSS, can claim EWSS in respect of these employees for pay dates from 1 July 2020 onwards. Revenue will pay the subsidy in these circumstances, as soon as practicable after 15 September 2020.

From 18 August onwards, you, your agent or payroll provider will be able to register for the EWSS through Revenue’s Online Service (ROS). Applications will only be processed if you are:

1. registered for Employer’s PAYE/PRSI (PREM),
2. have a bank account linked to the PREM registration and
3. have tax clearance.

To qualify for the benefits of the EWSS you must remain tax cleared at all times. Further information can be found at https://www.revenue.ie/en/online-services/services/manage-your-record/apply-for-tax-clearance-online-using-etc.aspx

Revenue guidelines outlining the operation of and eligibility criteria  for employers to satisfy in order to participate in the EWSS can be found in the  Guidelines on the operation of the Employment Wage Subsidy Scheme.

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