Q2 has been a bumpy ride, with more changes likely on the horizon with the new Government now in place.
The COVID-19 Temporary Wage Subsidy Scheme moved from the transitional stage to the Operational stage on the May 4th and has been extended to the 31st of August 2020.
The Pandemic Unemployment Payment had been extended to the 10th of August. However, as of 29th June the value has been reduced to the equivalent of Job Seekers Benefit where the employee earned less than €200 per week in Jan and Feb.
There is a lot of activity at the moment. Reopening businesses are bringing staff back from PUP and putting them on TWSS. Others businesses are taking staff off the TWSS and returning to more normal payroll cycle.
Our guides on the two processes can be found below and in the help menu.
Operational Phase Setup Guide:
Exiting TWSS Guide:
Revenue issued a press release which provided important information on the extension of the Temporary Wage Subsidy Scheme
The main points are:
- The TWSS has been extended until the 31st August
- The eligibility criteria remains the same – relates to the level of negative economic disruption suffered by the employer due to Covid-19 in the period April – June 2020.
- New participants who meet the eligibility criteria can join TWSS i.e. those who are opening up for the first time since March.
- Employees should inform DEASP that they are to be removed from the Pandemic Unemployment Payment in order for the employer to claim TWSS.
- As we are now at the end of Quarter 2 it is time to get the proof of eligibility documentation together. If you did not have the expected decline in business of 25% , then you should remove yourself from the TWSS scheme Revenue will not seek to claw-back the subsidy paid to employers, who didn’t in hindsight meet the criteria, where evidence of the best estimate determination supporting the original application is found to be reasonable. If there was not a reasonable basis the subsidy is repayable to Revenue.
- Revenue are currently sending out letters to 55,000 employers on the scheme requesting supporting documentation demonstrating eligibility and that subsidies were passed through to employees
- If you wish to repay the subsidy to Revenue inform them of this intention via MyEnquires in ROS. They will inform you how to repay in due course.
- Revenue will commence the reconciliation of the Temporary wage subsidy scheme in August. There is a draft csv file that will need to be generated, however the Revenue system isn’t in place to receive that yet.
- Both the TWSS and the Pandemic Unemployment payment are liable for income tax. TWSS is also liable for USC. The tax amounts will be charged at the end of the year. All recipients of either scheme have been placed on the “Week 1” method of tax calculation as of the 20th June to minimise the amount of tax that will be owed at the end of the year.
- Employees can now look up the amount of TWSS that an employer has been paid for their employment via their MyAccount
- Revenue have commenced their TWSS compliance programme. Details of information that will be requested can be found in Revenue ebrief No. 117/20
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