Employment Wage Subsidy Scheme (EWSS)

The Government announced the Employment Wage Subsidy Scheme (EWSS) on 23rd July 2020. This is economy-wide enterprise support that focuses primarily on business eligibility. The scheme provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll.

The Employment Wage Subsidy Scheme (EWSS) will replace the Temporary Wage Subsidy Scheme (TWSS) from 1st September 2020. It is expected to continue until 31st March 2021. Both schemes will run in parallel from 1st July 2020 until the TWSS ceases at the end of August 2020.

Qualifying criteria for employers

The employer must have a valid tax clearance certificate and must continue to maintain tax clearance for the duration of the scheme.

They must be able to demonstrate that:

• their business will experience a 30% reduction in turnover or orders between 1st July 2020 and 31st December 2020

and

• this disruption is caused by COVID-19.

This reduction in turnover or orders is relative to:

• the same period in 2019 where the business was in existence prior to 1st July 2019
• the date of commencement to 31st December 2019

or

• where a business commenced after 1st November 2019, the projected turnover or orders.

The employer is required to undertake a review on the last day of every month to ensure they continue to meet the above eligibility criteria. If they no longer qualify, they should deregister for Employment Wage Subsidy Scheme (EWSS) with effect from the following day (that being the first of the month).

The scheme will be administered by Revenue on a ‘self-assessment’ basis. The Employment Wage Subsidy Scheme (EWSS) will re-establish the normal requirement to operate PAYE on all payments. This includes the regular deduction and remittance of income tax, USC, and employee PRSI.

Claiming EWSS for new hires and seasonal workers

Eligible employers may backdate a claim to 1st July 2020 for Employment Wage Subsidy Scheme (EWSS) payments in respect of new hires and seasonal workers, subject to limited exceptions. Payments in respect of July and August are expected to be made by Revenue in mid-September, with payments for subsequent periods being made monthly in arrears thereafter.

Subsidy Support

This support will be backdated to 1st July for employees of qualifying employers who did not qualify for TWSS.

PRSI

A 0.5% rate of employers PRSI will continue to apply for employment that are eligible for the subsidy.

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