COVID-19 Wage Subsidy Scheme Update

As a further update to the changes to the COVID-19 Wage Subsidy Scheme. Please see below an outline of the subsidy scheme from 4 May 2020

 

On 15 April 2020, changes to the Wage Subsidy Scheme were announced. These changes will take effect from 4 May.

  • The subsidy will increase from 70% to 85% for employees with a previous average take home pay below €412 per week
  • The subsidy will be €350 per week for employees with a previous average take home pay between €412 and €500 per week
  • The subsidy remains the same for employees with a previous average take home pay of between €500 and €586 per week
  • A tiered system has been introduced for employees with a previous average take home pay of over €586 and less than €960 per week
  • Employees who were taking home more than €960 per week will be able to avail of the scheme (this change applies from 16 April)

 

You do not need to re-apply if you have already applied for the Employer COVID-19 Refund Scheme.

You can make payroll submissions from 26 March 2020 under the Temporary Wage Subsidy Scheme arrangements on the same basis as for the Employer COVID-19 Refund Scheme, and €410 will be refunded for each eligible employee per week.

You will then be reimbursed for amounts paid to employees and notified to Revenue through the payroll process. In general, this will be made within 2 working days after receipt of the payroll submission.

 

The Revenue Commissioners have urged anyone thinking of rehiring employees to do so before May 4th as it will make the administration of the scheme much easier for them. For businesses who have already availed of the scheme, Revenue may have overpaid the subsidy that the actual business is entitled to. Details of both the reconciliation process and the process for employers to follow when returning excess Wage Subsidy Scheme funds to Revenue will be published in due course. The Revenue have published how the excess subsidy should be repaid and the  banking details on their latest FAQ’s located at www.revenue.ie

 

 

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