Employment Wage Subsidy Scheme
How to set up the Employment Wage Subsidy Scheme
A guide to registering with Revenue and setting up in Parolla.
Review of Scheme Eligibility
The Employment Wage Subsidy Scheme is effective from 1st September 2020. EWSS will fully replace the TWSS from the 1st of September 2020 and will run until 31st March 2021.
EWSS will be back dated to 1st July for certain employees. The process for the backdating, which Revenue will refer to as the sweep back, will be outlined by Revenue at a later date.
The following documents are published by Revenue and take precedence to this guide.
- The employer must be able to demonstrate that the business will experience a 30% deduction in turnover or orders for the period from July to December 2020.
- This disruption is caused by Covid 19
This reduction in turnover or orders is relative to:
- The same period in 2019 where the business was in existence before 1 July 2019
- The date of commencement to 31 December 2019
- Where a business commenced after 1 November 2019, the projected turnover or orders.
The level of subsidy the employer will receive is per paid qualifying employee:
|Gross pay (per week)||Subsidy Payable (per week)|
|Less than €151.50||Nil|
|From €151.50 to €202.99||€151.50|
|From €203 to €1462||€203|
|More than €1462||Nil|
The PRSI employer rate of 0.5% will apply for each eligible employee. The normal PRSI rate should be applied to the payslips and will be reconciled in the sweep back / monthly statement of account on ROS. The employer PRSI credit will be offset against the employers other PAYE liabilities.
- Employees of an eligible employer will qualify for a subsidy including existing employees, newly hired employees and re-hired employees.
- Any employee who was not eligible for TWSS in the period 1st July to 31st August will be eligible for EWSS for that period.
- Employees who were on TWSS up to the 31st of August will be eligible for EWSS from 1st Sept.
- Proprietary Directors can qualify for one eligible company, so long as they were on the payroll with at least one submitted payslip dated between 1st July 2019 and 30th June 2020.
- Connected persons who were not on the payroll during July 2019 to June 2020 are not eligible. Further guidance to follow from Revenue.
Registering for EWSS
- Employers must register on ROS for the scheme (the TWSS registration form does not transfer to the EWSS).
- Employers must have a Tax Clearance certificate to register and receive subsidy payments.
- Payroll submissions must be made to Revenue in line with PAYE modernisation rules which state that employers must report payroll details to Revenue each time an employee is paid. Employers must report these details on or before the payment date
De-registering from EWSS
Revenue requires a registered employer to conduct an eligibility review on the last day of each month.
Employers should immediately de-register from the scheme if at any time they become aware that they no longer meet the eligibility requirement.
Sweep back of July and August
Revenue will request a Excel/CSV file from the employer containing the details of employees who are to be included in the sweep back. This process has not been finalised at time of writing.
Registering for EWSS on ROS
Setting Up Parolla
Exiting the TWSS
The Temporary Wage Subsidy Scheme expires 31st August 2020. To exit the TWSS in Parolla you need to restore the employee’s normal payslip template to its pre-covid state.
Go to the employee Employment profile page, select the Payslip Template use the Rebuild Template button to rebuild anew.
Please read our guide on Exiting the TWSS scheme here: https://workdrive.zoho.com/file/hscnna09a4e96379b43d39f8bb462e5c7d148
The validation process will raise a warning when a payslip with a payment date after 1st September contains a Covid-19 TWSS subsidy line item.
Setting up EWSS
The wizard menu contains a link to the EWSS setup page.
Confirm the employer meets the eligibility requirements and select the qualifying employees:
This will update the employee template payslips with the EWSS flag that gets submitted to Revenue with the Payslip Submission Requests.
The qualifying employees that are being claimed for subsidy are shown on the right of the page.
If the employee should not be qualifying, due to being a connected employee to a proprietary director, or not in the affected business group, the you should de-select them. Revenue would also prefer for employees with weekly wages outside the subsidy bands to be deselected.
Parolla will display a warning if the EWSS selected payslip is outside the weekly gross pay band, where a subsidy be nil, and therefore should not be submitted to Revenue.
You can change the qualifying employees either by using the EWSS wizard, or if it just this pay run, you can update the employee in their payslip.
Process and submit the pay run as normal.
Ensure that the pay run is submitted to Revenue on time.
Revenue will accept re-submissions up to the 15th of the following month. However, if there is no submission by the 15th of the following month there will be no subsidy paid.
EWSS reporting in ROS
EWSS differs from TWSS in that it is a grant paid directly to the employer and details of EWSS should not appear on the employees pay slip.
To track EWSS and PRSI credits associated to EWSS log onto ROS and on the My Services page choose View payroll
You will get a summary of the amount of EWSS and PRSI credit calculated based on the submissions with pay dates in the month so far.
You can view all line items where EWSS was claimed and the warning messages, if any, will show up there.
The View button will bring you into the payslip as submitted