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Ireland Revenue Announces New Phase of COVID-19 Wage Subsidy Scheme

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By Edward Kowalski, Esq. | 19 May 2020

The Office of the Revenue Commissioners (Revenue) of Ireland announced that as of 8 May 2020, the COVID-19 Temporary Wage Subsidy Scheme (TWSS) has entered an "operational phase" that replaces the initial determination of wage subsidies when the program was put in place on 26 March 2020.

The TWSS provides eligible employers with a subsidy that must be included as part of employees' wages. The program is open to employers that have experienced significant negative economic disruption due to COVID-19. Employers should be able to show that they meet the eligibility criteria set out by Revenue.

The TWSS is operated in real-time by employers through the normal payroll process and is based on an employee's gross pay. The amount of the subsidy paid to an employee must be indicated on the employee's payslip labeled as "GovC19 WageSub."

During the initial phase of the TWSS, eligible employers were reimbursed a maximum subsidy of €410 for each eligible employee, regardless of the employee's income. As of 8 May 2020, Revenue confirmed that the TWSS is now based on each eligible employee's average net weekly pay for January and February 2020, as shown on payroll reporting to Revenue by the employer. Revenue also announced that it has implemented most of the revised TWSS subsidy rates, which are effective for payroll submissions made to Revenue on or after 4 May 2020.

Details about the administration of the TWSS during the operational phase are available on Revenue's website. Updated statistics on the administration of the TWSS are also available.

Edward Kowalski, Esq., is Manager of Payroll Information Resources for the American Payroll Association.