Are you wondering why you now owe Revenue money as a result of The Temporary Wage Subsidy Scheme (TWSS)?
For the first 6 weeks of the TWSS 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. In a lot of cases this €410 exceeded the subsidy that the employee was entitled to receive, and it was made very clear from the start that there would be a reconciliation to rectify this overpayment.
The scheme was designed to assist employers and employees impacted by COVID-19, and to encourage companies to keep their workers on the payroll. If you didn’t avail of the TWSS then you won’t have a TWSS reconciliation.
On Monday 22nd March 2021, Revenue advised that most employers can now access their TWSS reconciliation balances in Revenue’s Online Service (ROS). The reconciliation balance is based on the actual information provided to Revenue by the employer.
The TWSS reconciliation period opened on 22 March 2021 and employers have until the end of June to review and accept the reconciliation amounts. Revenue are strongly recommending that employers take the time to read & understand the guidance before accepting the reconciliation amounts.
Approximately 40% of the employers that availed of TWSS are balanced. Revenue have said they will not pursue companies that owe a balance of under €500 as they will be considered balanced.
BrightPay hosted a TWSS reconciliation webinar with guest speakers from Revenue on 24th March 2021. During the webinar, we discussed the reconciliation process and had a Questions & Answers session at the end. Watch the webinar on-demand now.
You can also click here to register for our next webinar, which takes place on 21st April 2021