About the Scheme
The Employment Wage Subsidy Scheme (EWSS) replaces the Temporary Wage Subsidy Scheme (TWSS) as a COVID-19 relief measure. Detailed information on this scheme is available on Revenue’s website here.
We have extracted the following important points which should be noted:
The TWSS ended on 31 August 2020. The EWSS was initially set to run from 1 September 2020 until 31 March 2021. This was later extended until 30 June 2021 and then later further extended until 31 December 2021.
The scheme has two elements as follows:
- It provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll; and
- It charges a reduced rate of employer PRSI of 0.5% on wages paid which are eligible for the subsidy payment.
To be eligible to receive the subsidy, employers must meet the eligibility criteria for the various periods. This is outlined on Revenue’s website here.
Employers are required to undertake a review on the last day of every month to ensure they continue to meet the eligibility criteria. If they no longer qualify, they should deregister for EWSS with effect from the following day (first day of the following month). However, they can then claim the next month if they subsequently qualify again; however, they will not be able to backdate claims, as that reflected the employer’s expectation at the time.
UPDATE 15 JULY 2021
From 1 July 2021 onwards, the monthly eligibility review mentioned above must be carried out online in ROS, by way of an online monthly Eligibility Review Form. The form must be completed:
- Between 21st and 30th July for your July submission; and
- By the 15th of the month for each subsequent submission applied for.
After completing your submission on ROS, if you are deemed to no longer satisfy the 30% reduction requirement, a warning message will appear. As Revenue is carrying out real-time comparisons to other data sources, we cannot reinforce enough how important it is to make sure your submissions are as accurate as possible.
More detail on these new obligations can be found in Revenue’s new EWSS eligibility guidelines from 1 July 2021 (released 9 July 2021). This provides a comprehensive guide to your EWSS obligations from July onwards.
Employers must register for the EWSS on ROS. A Tax Clearance will be required to register and receive subsidy payments.
The subsidy amount is calculated per qualifying employee (see below) based on their weekly wage, as follows:
|Employee Gross Weekly Wages||Subsidy Payable|
|Less than € 151.50||Nil|
|From € 151.50 to € 202.99||€ 203|
|From € 203 to € 299.99||€ 250|
|From € 300 to € 399.99||€ 300|
|From € 400 to € 1,462||€ 350|
|Above € 1,462||Nil|
The subsidy for employers is based on the number of qualifying employees. Qualifying employees are those employees who:
- Do not earn less than €151.50 per week
- Do not earn more than €1,462 per week
- Are not connected persons that were recently employed (i.e. they were not on payroll from June 2019 to June 2020)
Claims and Payment Process
The following outlines the process for claims and payments of EWSS:
- To make a claim once you are registered, add the EWSS system item to each qualifying employee’s payslip (see the System Navigation section below).
- When payroll submissions are made for the period, Revenue will calculate the subsidy for each employee with the EWSS system item.
- Errors will occur and warnings will be issued where claims are made for employees that do not qualify.
- The View Payroll section on ROS will be extended to show the subsidy calculated per payslip for EWSS.
- Employers will receive ROS Inbox Document with the amount of the subsidy payment to be made after the return date.
- Subsidy payments will be made monthly to employers after the return date.
- Changes to your payroll after the return due date will not be processed for the subsidy payment.
The system item for EWSS can be added individually or in bulk.
To add it individually:
- Go to an employee’s profile
- Click on Add next to Regular Inputs
- Select Employment Wage Scheme Subsidy
- Click Save
To add it in bulk:
- Go to Employees > Bulk Actions
- Click on Regular Inputs under Payroll Inputs
- Select “Employment Wage Scheme Subsidy” from the dropdown filters
- Click on the checkbox under Add to add it to the payslip for that employee
- Click Save when you have added it for all qualifying employees