Employment Wage Subsidy Scheme

Aug 10, 2020

Section 2 of the Act provides for the new Employment Wage Subsidy Scheme (EWSS). The EWSS will replace the Temporary Wage Subsidy Scheme (TWSS) from 1 September. We understand that Revenue are currently drafting guidance for the EWSS and expect the facility for employer registrations to be available later in August.

Revenue published a webpage on the EWSS. The webpage sets out the qualifying criteria for employers and additional information relating to the scheme. Revenue have clarified that claims for new hires and seasonal employees can be backdated to 1 July 2020. Payments for July and August are expected to be made by Revenue in mid-September.

Revenue highlighted in its recent press release, that unlike the TWSS, employers must have a tax clearance certificate to be eligible to join the EWSS. Meaning the employer must have complied with their obligations under tax legislation in relation to filing returns and paying taxes. Employers who qualify for tax debt warehousing and/or have a PPA for non-COVID-19 tax debt will still be regarded as tax compliant. Employers must maintain this tax compliance status through the course of the scheme to continue receiving EWSS benefit.

Chartered Accountants Ireland will host a wage subsidy scheme webinar with Revenue on 26 August. You can register through the webinar webpage.