The Employment Wage Subsidy Scheme (EWSS) will replace the Temporary Wage Subsidy Scheme (TWSS) from September 1st 2020.
Comprehensive Revenue guidance has now been published with regard to the operation of the Employment Wage Subsidy Scheme which can be accessed here.
Please find below an overview with regard to how the scheme will operate and to help you prepare for it should you choose to avail of it.
Subsidy Payment:
Please note: gross pay includes notional pay and is before any deductions for pension, salary sacrifice etc.
The subsidy will be paid to employers monthly after the return due date (14th of the following month). Any changes made to payroll submissions after the return due date will not be processed for subsidy payments.
Payroll:
Employer PRSI
A 0.5% rate of employers PRSI will continue to apply for employments that are eligible for the subsidy, this is expected to work as follows:
EWSS - July/August 2020
TWSS and EWSS will run in parallel from 1st July to 31st August, employees already on TWSS must remain on TWSS until the end of August. Employers wishing to operate the scheme from July 1st i.e. for employees not eligible for TWSS, should process the payroll for these employees in the normal manner and Revenue will review these cases at a later date and refund the subsidy due.
Revenue plan to cater for this via myEnquiries, this will require employers will provide Revenue with the employee details etc. Payment should be made to employers in September.
Publication
A list of employers availing of EWSS will be published in January 2021 and April 2021 to www.revenue.ie
Software Upgrade (to cater for EWSS)
We plan to release an upgrade for BrightPay in the week commencing 24th August. Revenue are still fine tuning the details of the scheme and how it will interact with PAYE Modernisation. Therefore, unfortunately, we will be unable to release an upgrade any earlier than this.
Need help? Support is available at 01 8352074 or brightpayirelandsupport@brightsg.com.