Irish Employment Wage Subsidy Scheme now in place until next March
The Irish Government’s Temporary Wage Subsidy Scheme (TWSS) has now been replaced by the Employment Wage Subsidy Scheme (EWSS).
Launched on 26 March, the TWSS has been providing wage supports to employers impacted by the Covid-19 pandemic. It expired on 31 August, and the new EWSS is now in place until 31 March 2021.
The EWSS will allow employers to seek wage subsidies for a broader range of workers, including new hires and seasonal workers. However, the maximum subsidy per worker will fall from €410 to €203 per week, and instead of being a percentage of the employee's net pay, there will be two fixed rates: €151.50 or €203. Only workers earning above €151.50 and below €1,462 will be eligible for the EWSS.
Under the TWSS, a qualifying business had to forecast a loss of turnover of at least 25%, but under the EWSS, the threshold rises to a fall-off in business of at least 30%. In addition, the employer will have to have a valid Tax Clearance Certificate, showing that the tax affairs of the business and connected persons are in order.
Under the EWSS, the time frame for an employer receiving the subsidy sum could be up to six weeks – as opposed to the 48 hours it took under the TWSS. Minister for Finance Paschal Donohoe said he has asked officials and Revenue to look at options to address this.
Meanwhile, Revenue has clarified the rules under which small business owners can avail of the EWSS, following a recent reversal by the Government. It had initially barred proprietary directors – people who own more than 15% of a business – from being able to access it.
Revenue said that for small business owners to be eligible for the scheme, proprietary directors must be on the company payroll and must have been paid wages over the year to the end of June. In addition, their business must meet the other necessary criteria for the EWSS.
“Eligible employers who wish to claim EWSS need to register for the scheme in advance of making their submission through Revenue’s online service,” said Orla Fitzpatrick, head of Revenue’s medium enterprises division. “Such employers must have an active PAYE/PRSI registration, a bank account linked to that registration, and they must also have tax clearance.”
