Important updated information on TWSS Operational Phase (Sponsored)

May 13, 2020

The Operational Phase of the Temporary Wage Subsidy Scheme (TWSS) came into effect on the 4 May 2020, and applies to payroll submitted to Revenue on or after 4 May 2020, with a pay date on or after that date.

During the Operational Phase of the scheme, Revenue will calculate employees' previous average net weekly pay and their maximum personal subsidy amount and provide this information to employers. The values Revenue are providing are based on the submissions made to them in January and February 2020.

This Revenue instruction is in the form of a TWSS file. This file must be manually downloaded from ROS and imported into your payroll software before processing any subsidy payments that fall under the operational phase. 

As Revenue will be informing employers of which employees are eligible, along with how much they can pay tax free and the maximum top-up allowed, there will be no option to deviate from the amount that Revenue has given you. 

There are some situations where an employee was in employment but who did not receive normal pay in January or February 2020, such as reduced pay, maternity leave, illness benefit or unpaid leave. In such cases the employer can either:

  • operate the scheme based on Average Revenue Net Weekly Pay, or
  • pay the employee the appropriate wages without receiving a subsidy refund.

Employers must file a payroll submission with Revenue on or before the day they pay their employees. Based on this submission, Revenue will refund the employer the subsidy amount that each applicable employee is eligible to receive (after any tapering required has been applied). The refund from Revenue will, in general, be made to the employer within 2 working days after receipt of the payroll submission (PSR).

Free Webinar: COVID-19 & Payroll

In this webinar, we will discuss the Temporary Wage Subsidy Scheme, how the operational phase works and how BrightPay & Thesaurus Payroll Manager cater for this new phase.

Places are limited - Only 20 places remaining for our next webinar on 21st May.

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(Sponsored by BrightPay. Please note that although the information above is correct at the time of writing, circumstances may change. It is therefore advisable to seek professional advice on such issues.)