TWSS reconciliation – a guide from Collsoft Payroll (Sponsored)

Mar 18, 2021

By Jason Collins, Founder of CollSoft Payroll

Almost one year after the introduction of the Temporary Wage Subsidy Scheme (TWSS), Revenue is now ready to commence the final part of the TWSS reconciliation process. From today, most employers and their tax agents will be able to view a TWSS reconciliation summary which will show if any amounts are owed to Revenue or the employer.

In addition to the summary, Revenue will be making a detailed TWSS Reconciliation CSV file available to employers which will include a complete record of the TWSS related payslips and how they have been reconciled.

Employers will have until the end of June 2021 to review their reconciliation and correct any mistakes that have been made in the reporting of their TWSS payslips. Employers should use this time to study their reconciliation in detail before finalising the reconciliation with Revenue.

Once the employer is satisfied with the final balance, they will be able to accept the reconciliation calculation and Revenue will either collect any amount owed or pay any amounts due to the employer.

The TWSS Reconciliation CSV file

Most employers will be able to download their detailed TWSS Reconciliation CSV file from Revenue Online Service (ROS) today. A small number of employers who are currently engaged in a process with a Revenue caseworker may have to wait a little longer before their file is available.

The CSV file contains a list of all TWSS related payslips that were submitted by the employer during the scheme.

Here is a brief list of the data contained in the file:

Column

Column Name

Notes

A

employerRegistrationNumber

 

B

payrollRunReference

 

C

lineItemID

 

D

employeePPSN

 

E

employmentID

 

F

payDate

 

G

subsidyPaid

The amount of TWSS paid to the employee as reported by the Employer.

 

H

payslipStatus

Indicates the current status of the payslip on ROS. Most will be active but there may be some which have since been deleted by the employer.

I

refundAllowedIndicator

Indicates if Revenue allowed the payment of TWSS when the payslip was submitted. For example, there was an issue in ROS whereby Revenue would not pay TWSS for any payslip which contained a cessation date. These will be paid out now under reconciliation.

J

refundNotAllowedReason

The reason Revenue did not pay TWSS for this payslip. For example: J9 Payslip leaveDate has a value”

K

subsidyPayable

The amount of TWSS actually payable based on the scheme rules, rates, employees’ average Revenue net weekly pay (ARNWP) and the amount of employer top-ups.

L

subsidyResolved

This is where a Revenue caseworker has reviewed the payslip and determined that the subsidyPayable figure is not correct.

M

reconciliationSubsidy

This is the amount which Revenue are accepting as being the reconciled subsidy.

N

twssTotal

The amount of TWSS actually refunded by Revenue at the time.

O

reconciledBalance

 

 

Most of the data in the CSV file is self-explanatory but the values in some columns may be a little less obvious.

Column G – subsidyPaid

This is the amount that the employer has reported as having been paid to the employee either through their payroll software or by uploading a TWSS Paid CSV file.

If an employer has not reported the amount of TWSS paid to an employee for a particular payslip, this cell will say “unreported” and the employer will need to report what TWSS was actually paid to the employee – even if that is zero.

It may also be the case that the employer has reported that there was zero TWSS paid to the employee in respect of this payslip, and while that may be correct, it could also be the result of an incorrect configuration in their payroll software.

Employers should pay special attention to any lines which have zero or “unreported” values as this will result in Revenue clawing back the full amount of TWSS that was paid to the employer.

Column K – subsidyPayable

This is the amount of TWSS due for a particular payslip as calculated by Revenue. These calculations are based on the various rules and rates that applied as well as the employee’s ARNWP, the amount of additional top-up paid by the employer and will take account of any tapering that should have occurred.

There were specific instances during the scheme where Revenue did not refund any TWSS to the employer; for example, where the payslip had a cessation date. In these cases, Revenue will now calculate the TWSS which would have been due.

Column M – reconciliationSubsidy

This is the final reconciled amount of TWSS for this particular payslip. Generally speaking it will be the lesser of Column G or Column K, however in situations where the amount paid by the employer (G) does not exceed Revenue’s calculation by more than €5, Revenue will accept this amount as the reconciled subsidy.

For example, if the employer paid €250 TWSS to an employee but Revenue have calculated that the amount of TWSS due was €300, the reconciled figure will be based on what the employer paid –  €250.

Likewise, if the employer paid €350 TWSS but Revenue calculated that the amount due was €300 (let’s say the employer didn’t apply tapering), the reconciled subsidy will be the Revenue figure of €300.

This reconciled subsidy amount will then be used to determine if any over or underpayments have been made by Revenue. 

Column N – twssTotal

This is the amount of TWSS that was originally refunded to the employer by Revenue for the payslip. During the transitional phase of TWSS from 26 March to 3 May, this was always €410 per week whereas in the operational phase from 4 May, it was an amount calculated by Revenue based on the payslip submitted.

Column O – reconciledBalance

This is simply the twssTotal minus reconciliationSubsidy (N minus M) and indicates if the payslip has been underpaid, overpaid or balanced.

A positive figure in this column indicates an amount that the employer must repay to Revenue whereas a negative figure indicates an amount which Revenue will refund the employer.

Ineligible TWSS Payslips

It is estimated that between 10% to 20% of employers may have submitted J9 payslips which were ultimately ineligible for TWSS and thus not eligible for the reduced rates of PRSI available at PRSI Class J9.

In most cases, the number of payslips involved is small and may not require any corrective action to be taken. However, there may be instances whereby the amount of PRSI forgone by the State (both employee and employer contributions) will have to be paid to Revenue.

Further clarification and guidance on this matter is expected from Revenue in the near future and, as it is a separate process, it will not prevent employers from accepting their TWSS reconciliation.

For more information about TWSS reconciliation and other payroll software advice, go to www.collsoft.ie.

(Sponsored by CollSoft Payroll. 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.)