The Employment Wage Subsidy Scheme or the EWSS is a new scheme announced by Government on 23 July 2020. It provides a flat-rate subsidy for qualifying employers based on the number of eligible employees on their payroll.
The EWSS replaces the TWSS (Temporary Wage Subsidy Scheme). Some employees who were not eligible for the TWSS may now qualify for the new scheme. Where this is the case, claims can be backdated to 1 July 2020. Revenue has said that a template will be available in late August to facilitate these ‘sweepback’ claims.
The EWSS comes into effect on 1 September 2020 and is expected to continue until 31 March 2021
Employers who are already registered for the TWSS can continue paying employees under that scheme until 31 August 2020. To transfer eligible employees onto the EWSS for pay dates from 1 September 2020 onwards, a new application must be submitted through Revenue Online.
You apply for the EWSS through Revenue Online. You will need to self-declare that your business qualifies for the EWSS. Once you have registered, you must undertake a review at the end of every month to check that you still qualify for the scheme. If you no longer qualify, you must deregister with effect from the first day of the next month. Note that each monthly review covers your projected turnover for the entire 6-month period (July-December), not just for the month in question.
Yes. If you had de-registered for the EWSS based on a monthly review and then find that you will in fact meet the eligibility requirements you may re-register, however you will not be able to claim retrospective payments under the EWSS in this situation.
The amount payable depends on the actual gross payment made to an employee in a given period, not on the average net pay as was the case with the TWSS. The subsidy is paid at a flat rate per employee, as set out below:
|Employee Gross Weekly Wages||Subsidy Payable|
|Less than € 151.50||Nil|
|From € 151.50 to € 202.99||€ 151.50|
|From € 203 to € 1,462||€ 203|
|More than € 1,462||Nil|
Payments in respect of July and August 2020 are expected to be made by Revenue in mid-September. Payments for subsequent periods will be made monthly in arrears. You must maintain your tax clearance to continue receiving the subsidy.
Under the EWSS, payroll is run as normal with the re-establishment of the usual deductions for PAYE, USC, and PRSI. To indicate that you wish to claim the subsidy for a particular employee, you must include ‘EWSS’ as the payment type in the ‘Other Payments’ section of the payroll submission, with either a 0.00 or 0.01 value (the amount required will depend on your payroll software). The EWSS is an employer subsidy, and will not appear on the employee’s payslip.
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