Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 Wage Subsidy Schemes Welcome (TWSS & EWSS) to today’s webinar The webinar will begin shortly… From Thesaurus Software… From Revenue… Rachel Hynes Audrey Mooney Paul Byrne Laura Murphy Siobhán Gilbourne Gearóid Murphy Anne Dullea Laura Glancy Senior Marketing Customer Support Managing Director & HR Manager & Higher Executive Officer Principal Officer Principal Officer Assistant Principal Executive Manager Former Accountant Employment Law Expert (Personal Division) (Personal Division) (Medium Enterprises (Personal Taxes, Policy & Division) Legislation Division) 1
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 Webinar Introduction Revenue Presentation - TWSS & EWSS Questions Recording Email EWSS in Thesaurus Payroll Manager EWSS in BrightPay How Connect can help Q&A Panel Discussion Handouts Resources TWSS operated from 26th March until 31 st August TWSS & EWSS Temporary Processed through the payroll as a non-taxable addition Wage Subsidy What you need to know Scheme Revenue reconciliation to rectify overpayments in transitional phase J9 Submissions with a pay date after 31st August will be rejected 2
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 EWSS will run from 1st July 2020 until 31st March 2021 Employment Replaced TWSS from 1st September COVID 19 - Wage Subsidy Schemes Wage Subsidy Thesaurus Software Employers need to register for the 3 September 2020 Scheme EWSS via ROS – need up to date tax clearance Anne Dullea, Principal Officer Gearóid Murphy, Principal Officer Laura Glancy, Assistant Principal The date of registration cannot Siobhán Gilbourne, Higher be backdated Executive Officer TWSS – Moving Forward • How do employers stop operating the scheme • Compliance check programme • Reconciliation • End of year review Temporary Wage Subsidy Scheme (TWSS) 26 March 2020 to 31 August 2020 3
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 How do employers stop operating the scheme? Compliance Check Programme Letters issuing to employers/agents via MyEnquiries TWSS ceases for all submissions with pay dates on or after 1 September Verification checks to confirm; Employer must stop making J9 payroll submissions and return all future payrolls to normal using RPNs and correct PRSI classes. • eligibility, • subsidy amounts paid (CSV file) Ensure the employee PRSI class on all its employees is returned to the correct PRSI class • payslip details Employer must retain all records for TWSS operation including subsidy payments to Address PMOD and outstanding tax issues employees. Employers operating TWSS will be included in Reconciliation and publication at the end of the scheme. Reconciliation Employee End of Year Review Development and testing phase Subsidy payment not taxable in ‘live’ PAYE environment for employee Reconciliation for each TWSS employer on each active payslip Liable to Income tax and USC by way of an employee end of year review (2020) Employers report ‘subsidy paid’ amount (amount paid from employer to employee) via CSV or ROS payroll reporting Unused tax credit may cover liability Calculation of ‘subsidy paid, subsidy payable, or caseworker resolved’ Reconciliation CSV file, notification through ROS inbox Reducing future tax credits Initial guidance available in Frequently Asked Questions V. 18 Employers continue to retain records Employee may have other tax credits such as health expenses to reduce liability TWSS refunds via RevPay 4
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 Transitioning from TWSS to EWSS TWSS and EWSS will operate parallel TWSS will expire TWSS Reconciliation Phase 1 July 2020 to 31 Aug 31 Mar 2021 31 July 2020 31 Aug 2020 1 Sep 2020 Q4 2020 2020 Employment Wage Subsidy Scheme (EWSS) Registration for TWSS closed, no new Commencement of EWSS applications EWSS Due to expire 1 September 2020 to 31 March 2021 Key Features of EWSS Employer Eligibility Employers must demonstrate that: Employer Eligibility Publication of Includes seasonal and employers to Revenue Register via 30% decline in business new hires from 1 July website Jan and April eRegistration on ROS 1 July to 31 Dec 2020. 2020 2021 eTax Clearance Flat rate subsidy to b) at least a 30% decline in either turnover or Operated through employer based on Employer PRSI Rate Safeguards to minimise a) their business has been significantly in orders received from 1 July 2020 to 31 normal payroll and employee weekly reduced to 0.5% abuse of the scheme December 2020, compared to same period disrupted by the Covid-19 pandemic deductions system GROSS pay 2019 5
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 Employer must remain tax compliant throughout the operation of the EWSS If no comparable period in 2019, where business operations commenced: Review of eligibility each month from August 2020 to February 2021. If circumstances change, or employer no longer meets eligibility, they must de- register on ROS from 1 st day of the following month and cease claiming subsidy After 1 November 2019, On or before 1 November 2019, the employer must be able to show projected turnover or orders for the period the 30% decline test determined in 2020 by reference to the same period in 2019, in which the 1 July to 31 December 2020 will be at least 30% less business was in operation than expected turnover or orders would have been If the employer becomes eligible again, they can re-register and operate EWSS without disruption caused by Covid-19. from the date of re-registration. Employee Eligibility Registration Employers must make a self declaration through ROS Childcare Businesses Certain exclusions in Non TWSS Employers eRegistration system to facilitate EWSS live from 18 Eligibility extended registered in legislation or non eligible TWSS No restrictions under to seasonal workers accordance with Proprietary Directors employees eligible TUPE arrangements August and new hires Childcare Act 1991 and Connected from 1st July included Parties Employer must be PAYE/PRSI registered, tax clear and has linked bank account in order to register for EWSS 6
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 Operating EWSS Subsidy Rates Eligible employers will receive a per-head subsidy on a flat rate basis which will be determined based on the amount of gross pay that the employer pays to the eligible Gross Wage Pay Frequency other than Flat rate subsidy employee weekly Includes notional pay Paid to employer based on Normal payroll PRSI/PAYE before deductions Calculate Gross Weekly process employee Gross Weekly Wage/No. of insurable Where employee weekly Gross Pay Subsidy Payable Excludes non-taxable Wage weeks benefits Less than €151.50 €0 From €151.50 to €202.99 €151.50 per week EWSS indicator Return filing Multiple employments From €203 to €1,462 €203 per week ‘Other Payments’ with a Submissions to be made by Each employer makes a value between Zero and 1 return filing date of More than €1,462 €0 relevant month i.e 14 th of to indicate subsidy request. claim in own right NOT ON PAYSLIP following month 25 Safeguards and Compliance The Act includes a specific anti-avoidance provision which seeks to counteract A. contrived situations whereby any gross pay due to an employee is deferred, suspended, increased or decreased with a view to securing the wage subsidy or Transition from TWSS to EWSS B. situations where an employee is laid off and removed from the payroll and replaced with two or more employees in relation for whom the subsidy would in Thesaurus & BrightPay be available. If Revenue identify any such cases, the employer will be treated as having never been eligible for the scheme and any subsidy payments received would need to be refunded, together with possible interest and penalties. Employer should retain all evidence and supporting documentation of their operation of EWSS as compliance checks will be undertaken on a risk or random basis. 27 7
Wage Subsdiy Scheme (TWSS & EWSS) | Guest: Revenue 3rd September 2020 How Connect can assist with the impact of COVID-19 99% Payroll Software of 5-star rating on Customer 250,000 Businesses the Year 2018 & 2019 Software Advice Satisfaction Rate in Ireland and the UK Additional Resources Questions & Answers BrightPay’s COVID-19 Resources Hub: https://www.brightpay.ie/pages/covid-19-resources Temporary COVID-19 Wage Subsidy Scheme – Revenue Guidance: https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-twss.pdf Employment Wage Subsidy Scheme https://www.revenue.ie/en/corporate/communications/stimulus/employment-wage-subsidy-scheme.aspx Pandemic Unemployment Payment – Payment Rates until April 2021 https://www.gov.ie/en/publication/0b0fc-covid-19-pandemic-unemployment-payment-rates-from-17- september-2020/ Audrey Mooney Paul Byrne Laura Murphy Gearóid Murphy Anne Dullea Laura Glancy Important Update – Employment Wage Subsidy Scheme Thesaurus Thesaurus Thesaurus Revenue Revenue Revenue https://www.brightpay.ie/blog/2020/08/the-employment-wage-subsidy-scheme-important-update/ Software Software Software Commissioners Commissioners Commissioners Tips for HR Managers Post-Coronavirus https://www.brightpay.ie/blog/2020/08/8-tips-for-hr-managers-post-coronavirus/ 8
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