On 23 July 2020 the government announced the Employment Wage Subsidy Scheme (EWSS). This will replace the TWSS from 1 September. While the legislation to enact the EWSS has not been brought into law at this time, it is expected to operate as follows:
Qualification Criteria for Employers
– Business will experience a 30% reduction in turnover or orders between 1 July 2020 and 31 December 2020, and
– The disruption is caused by Covid-19, and
– The employer must register for EWSS on ROS, Revenue hopes to have this available from mid August, and
– The Employer must have a Tax Clearance Certificate.
The reduction in turnover/orders is
– Against same period in 2019, if in existence then
– From date of commencement to 31 Dec 19, or
– Where commenced after 1 Nov 19, against the projected turnover/orders.
You are required to review your turnover on the last day of each month to ensure you continue to meet the eligibility criteria and if you no longer qualify you should deregister for EWSS the following day.
The scheme will run in parallel with the TWSS and new hires from 31 July who do not qualify for TWSS may qualify for the EWSS. Employees on TWSS will remain on TWSS. TWSS will cease on 31 August 2020.
Proprietary directors are not eligible.
Connected persons to the director(s) are not eligible, unless they were on the payroll during July 2019 to June 2020. E.g. Relations of the director(s).
Currently all other employees qualify, including new starters.
|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|
|More than € 203 and less than € 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.
The Subsidy will be paid to employers Monthly, after the ‘Return Due Date’. E.g. Payroll Submission with a Pay Date in September will be paid after the 15th of October.
The above is based on the announcement and bill published to-date. Once the legislation is passed and enacted we will provide additional guidance and updates on the specifics of the scheme.
More information can be found at https://www.revenue.ie/en/corporate/communications/covid19/employment-wage-subsidy-scheme.aspx