The CURRENT temporary wage subsidy scheme (TWSS) ENDS August 31. As an additional Covid-19 Business Support Government have introduced a replacement Employee Wage Subsidy Scheme (EWSS), which will be operated by Revenue, to enable Employers to maintain staffing levels where practicable.
This scheme operates from 1/9/20 to 31/3/21.
Whilst SIMILAR to TWSS there are quite a number of marked differences for the new Employee Wage Subsidy Scheme.
The main conditions are :
The business is expected to suffer at least a 30% reduction in turnover in the period July/December 2020, compared to SAME period in 2019 and the downturn MUST be COVID-19 related.
All companies must submit declaration that they comply with these conditions and may be subject to Revenue examination.
ALL EMPLOYERS in the new scheme MUST have a TAX CLEARANCE CERTIFICATE, this was not necessary for TWSS.
Benefits of Scheme:
A FLAT RATE SUBSIDY of €203 per week will be paid for employees earning €203 to €1462 per week.
A Subsidy of €151.50 will be payable for part time workers who earn €151.50 to €202.99 per week gross.
Also the J9 Employer PRSI class will apply to eligible employees.
The Subsidy is PAYABLE MONTHLY in ARREARS, this will generally be around 14th of the month.
All New hires from July 1 can be included in new scheme.
At present PROPRIETARY DIRECTORS are NOT included in the scheme BUT it is likely that they will be IF the company EMPLOYS OTHER NON FAMILY MEMBERS as well – we await clarification on this.
Employers MUST Self review that they qualify for the scheme at end of each month.
It is important to note that all Payroll systems must be updated if you are availing of this scheme. Give us a call if you have any queries about this.
Keep in mind that this is subject to Revenue clarifications as it is an ongoing development and changes to it are likely.