Temporary Wage Subsidy Scheme’s Reconciliation tax to be reviewed and accepted by 30 June
Employers have until 30 June to access their Temporary Wage Subsidy Scheme (TWSS) reconciliations and accept the balance shown on Revenue’s Online Service (ROS).
The TWSS scheme was initially designed to support employers and employees that may have been impacted by the Covid-19 pandemic. This scheme was set up to encourage companies to keep their workers on the payroll.
Back in March 2020 during the transitional phase, Revenue refunded a flat rate of €410 per employee per pay period, regardless of the employees’ earnings. As a result of this, this €410 exceeded the subsidy that the employee was entitled to receive, and it was made very clear that there would be a reconciliation to rectify this overpayment.
On 22 March 2021, Revenue advised that most employers can now access their TWSS reconciliation balances in ROS. This reconciliation balance is based on the information provided to Revenue by the employer.
Information that will be provided on ROS will include the following:
- The total TWSS amount paid to you by Revenue
- The total TWSS amount payable in respect of your employees
- The total TWSS paid by you to employees, according to the subsidy paid data you have provided
- The details of any differences between these amounts
This TWSS reconciliation period opened on 22 March 2021 and will stay open until 30 June. As an employer, you have until then to:
- Review your TWSS reconciliation information
- Correct any omissions in the reporting of subsidies paid
- Accept the reconciliation balance on the ROS
It is highly recommended that all employers take the time to read and understand the guidance given for this, before accepting the reconciliation amounts.
Please note that if you do not take any action by that date, Revenue will assume that you agree with the reconciliation balance.
Additionally, Revenue has suggested that they will not pursue companies that owe a balance of under €500 as they will be considered balanced – approximately 40 per cent of employers that have availed TWSS are balanced already.
Where tax is concerned, McMahon and Co. recognise the importance of considering the implications of all taxes on your circumstances. Tax planning with McMahon & Co. Kildare Accountants can help reduce or remove the effect of taxes, whether you are a business or individual. For more help or advice, please contact us today.
