Employment Wage Subsidy Scheme
The government Stimulus Plan announced at the end of July provides for a new Employment Wage Subsidy Scheme (EWSS) which will apply from 1st September until the end of March 2021. It will run concurrently with the Temporary Wage Subsidy Scheme (TWSS) from 1st July until 31 August at which stage the TWSS will cease. (July & August Only – seasonal and new hires will be eligible for the EWSS scheme that were not eligible for the TWSS scheme, Revenue will backdate these employees in Mid-September).
Under the EWSS, eligible employers will receive a per-head subsidy on a flat rate basis. The employer will receive a maximum of €203 per week for employees earning over €203 per week and €151.50 per week for those earning below that level. The scheme is expected to be open to all sectors and both new hires and seasonal staff will be eligible –such employees were previously outside of the scope of the TWSS.
The primary criteria for EWSS announced so far is that the employer must demonstrate that they are operating at no more than 70% turnover from the period July to December 2020 compared to the same period last year.
The EWSS provides employers with an important financial lifeline for the next 7 months. Such certainty will be invaluable to employers as they seek to evaluate and adapt business plans for the future. The government is setting aside €2.35 billion in employment subsidies under the EWSS which underpins the importance being placed on maintaining current employment levels within the economy, while the inclusion of new hires under the scheme will provide welcome support to employers who will look to expand their workforce in the future.
Registration for the Scheme
A separate registration process is required for EWSS as the eligibility criteria differs materially from the eligibility criteria for TWSS.
Employers or their authorised payroll agents can now register for EWSS through ROS. As part of the registration process, employers or their authorised agents will be required to sign a declaration. Applications will only be processed if employers:
- are registered for PAYE/PRSI
- have a bank account linked to that registration
- have tax clearance.
Additional information on the operation of the EWSS is set out in the Financial Provisions (Covid-19) (No. 2) Act 2020 or on the Revenue website https://www.revenue.ie/en/corporate/communications/stimulus/employment-wage-subsidy-scheme.aspx
If you require any further information please contact Hazel at payroll@mcmahonandco.ie/old