Latest update on TWSS compliance checks

Mar 01, 2021

At a recent TALC meeting, Revenue confirmed that 94 percent of compliance checks on the Temporary Wage Subsidy Scheme (TWSS) are now completed.  Revenue raised aspect queries on 2,300 cases of which 1,300 are closed. Of the cases closed, 478 cases have resulted in a settlement with a value of €8.9 million. Over 66,500 employers participated in the TWSS and Revenue’s figures indicate that employers have demonstrated a high degree of compliance with the TWSS. 

The implications for an employer having to repay TWSS under the TWSS Compliance Check Programme is as follows:

  • Employer must repay the TWSS.
  • Employer’s PRSI will arise on the TWSS due for repayment.
  • The employee is responsible for income tax and USC on the TWSS payments reclassified as remuneration and tax is due at the end of the year; see guidance for employees on their TWSS obligations. The employer can pay the income tax and USC on behalf of the employee and it will not be subject to BIK. The TWSS payments reclassified as remuneration must not be re-grossed. 
  • The TWSS can be repaid by the employer over a period on agreement with Revenue in advance of reconciliation and the repayment of TWSS is not currently subject to interest. 

Revenue notes that there may be a degree of cross over between the remaining compliance check cases and the finalisation of the reconciliation process and this may impact the information provided above.