The Government announced the Employment Wage Subsidy Scheme (EWSS) on 23rd July 2020. This is a country wide enterprise support that focuses primarily on a business’s eligibility. The scheme offers a flat-rate benefit to qualifying organizations depending on the numbers of paid and eligible employees on the payroll.
The Employment Wage Subsidy Scheme (EWSS) is set to replace the Temporary Wage Subsidy Scheme (TWSS) from 1st September 2020 and is expected to continue until 31st March 2021. gust 2020.
Qualifying criteria for employers
The employer must have a valid tax clearance certificate and must continue to maintain tax clearance for the duration of the scheme.
They must be able to demonstrate that:
• their business will experience a 30% reduction in turnover or orders between 1st July 2020 and 31st December 2020
And
• This disruption is because of the COVID-19 pandemic.
This reduction in turnover is relative to:
• the same period in 2019 where the business was in existence prior to 1st July 2019
• the date of commencement to 31st December 2019
Or
• Where a business commenced after 1st November 2019, the projected turnover or orders.
The employer is mandatorily required to undertake a review on the last day of every month to ensure they continue to meet the above eligibility criteria. If they do not qualify, they should immediately deregister form the scheme, on the 1st day of the subsequent month.
The scheme will be regulated on the basis of revenue on a ‘self-assessment’ basis. The Employment Wage Subsidy Scheme (EWSS) will re-establish the normal requirement to operate PAYE on all payments.
Claiming EWSS for new hires and seasonal workers
Eligible employers are allowed to backdate a claim to 1st July 2020 under the Employment Wage Subsidy Scheme (EWSS) payments but only in the case of new hires and seasonal workers. Payments in respect of July and August are expected to be made by Revenue in mid-September, with payments for subsequent periods being made monthly in arrears thereafter.
Subsidy Support
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
This support will be backdated to 1st July for employees of qualifying employers who did not qualify under TWSS.
PRSI
A 0.5% rate of employers PRSI will continue to apply for employment that are eligible for the subsidy.
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