EWSS and TWSS Schemes
With new updates to the EWSS, lets remind ourselves just what it is and how to get it for your business.
In order to be eligible for the EWSS, the following conditions must be satisfied:
- the employer meets the eligibility criteria for the EWSS,
- the proprietary director is on the payroll of the eligible employer, and
- the proprietary director has been paid wages which were reported to Revenue on the payroll of the eligible employer at any stage between 1 July 2019 and 30 June 2020
Where a person is a proprietary director of two or more eligible companies, a claim for EWSS can only be submitted in respect of a single company. Once an election is made it cannot be changed during the term of the scheme.
We want to provide a reminder on some key upcoming deadlines relating to TWSS and EWSS.
1. TWSS - Reconciliation process
Employers are required to report the actual subsidy paid to employees, on each date, to Revenue before 31 October 2020.
2. TWSS – Taxation of payments received by employees
Revenue have confirmed that payments received under the TWSS and PUP, which were not taxed in real-time,will be addressed through a Preliminary End of Year Statement.
3. EWSS Sweepback – Submit claims before 14 October
The sweepback facility allows for claims to be backdated to 1 July 2020 for newly or seasonally hired employees who were ineligible for the TWSS. To avail of the sweepback,applications must be submitted before 14 October 2020.
4. Tax Clearance from Revenue
Tax clearance is required in order to the register for the Employment Wage Subsidy Scheme. It is not a requirement for debt warehousing,however those availing of warehousing are required to keep their tax affairs up to date.
In a commitment to minimising any hardship for employees Revenue have said:
“Employees will be given the opportunity to fully or partially pay any income tax and USCliability through the Payments/Repayments facility in myAccount. Otherwise,Revenue will collect the liability, interest free, by reducing the employees tax credits over 4 years to minimise any hardship. The reduction of tax credits will start in January 2022.”