Employer Notice: Wage Subsidy Scheme Going Live

Live today!

The Employment Wage Subsidy Scheme (EWSS) available from today 18.08.2020 on Revenue.ie

To Apply

  1. Register for Scheme
  2. Have up-to-date Tax Clearance
  3. Input bank details

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.

For further assistance or to find out more regarding COVID-19 business supports contact Wentworth or call on Wentworth on 021-4217470

 

Further reading about the scheme:

Employment Wage Subsidy Scheme (EWSS)

The Government announced the Employment Wage Subsidy Scheme (EWSS) on 23 July 2020. This is an economy-wide enterprise support that focuses primarily on business eligibility. The scheme provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll.

The EWSS will replace the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020. It is expected to continue until 31 March 2021. Both schemes will run in parallel from 1 July 2020 until the TWSS ceases at the end of August 2020.

Key features of the EWSS are set out below:

Qualifying criteria for employers

To qualify for the scheme, you must be able to demonstrate that:

  • your business will experience a 30% reduction in turnover or orders between 1 July and 31 December 2020

          and

  • 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 prior to 1 July 2019
  • the date of commencement to 31 December 2019

          or

  • where a business commenced after 1 November 2019, the projected turnover or orders.

You are required to undertake a review on the last day of every month to ensure you continue to meet the above eligibility criteria. If you no longer qualify, you should deregister for EWSS with effect from the following day (that being the first of the month).

Childcare businesses registered in accordance with Section 58C of the Child Care Act 1991 are also included in the scheme.

Certain categories of employees are excluded (further guidance will be provided shortly) and safeguards will be included to minimise abuse.

The scheme will be administered by Revenue on a ‘self-assessment’ basis. The EWSS will re-establish the normal requirement to operate PAYE on all payments. This includes the regular deduction and remittance of income tax, USC and employee PRSI.

Claiming EWSS for new hires and seasonal workers

Eligible employers may backdate a claim to 1 July 2020 for EWSS payments in respect of new hires and seasonal workers, subject to limited exceptions. Payments in respect of July and August are expected to be made by Revenue in mid-September, with payments for subsequent periods being made monthly in arrears thereafter. Further guidance and information for employers on how to make applications for new hires and seasonal workers will be available next week.

From 31 July:

  • TWSS employers can claim for non-TWSS employees (new hires) under the new EWSS.
  • Non-TWSS employers, who have not previously availed of TWSS, will only be eligible to apply for the EWSS.
  • TWSS employers will still be able to rehire eligible employees and continue to operate TWSS to 31 August 2020.

Subsidy Support

Level of subsidy the employer will receive is per paid employee
Employee Gross Weekly Wages 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

This support will be backdated to 1 July for employees of qualifying employers who did not qualify for TWSS.

PRSI

A 0.5% rate of employers PRSI will continue to apply for employments that are eligible for the subsidy.

Publication

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.

 

Information correct as of 18.08.2020 Revenue.ie.

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