Can you apply for financial support amid the Covid- 19 Pandemic?
On Tuesday, 24th March the Irish Government announced a new way of providing financial support to those workers affected by the Covid-19 crisis. As part of the new measures implemented the Revenue will operate a temporary wage subsidy scheme. The new scheme will allow employees to receive significant financial support directly from their employer through their existing payroll system.
This is important in more ways than one as it not only provides financial support but it also allows the employer to retain its links with employees for when business resumes after this crisis.
For employers, it is encouraged to facilitate this by offering the scheme to its employees.
This also takes some of the burden from the existing financial supports in Ireland now with increased demand on these services.
See below information provided by the Revenue;
How does it work?
Replaces the previous COVID-19 Refund Scheme.
Initially, and from this Thursday (26 March 2020), the subsidy scheme will refund employers up to a maximum of €410 per each qualifying employee.
However, employers should pay no more than the normal weekly net pay of the employee.
The subsidy scheme applies both to employers who top up employees’ wages and those that aren’t in a position to do so.
Employers make this special support payment to their employees through their normal payroll process.
Employers will then be reimbursed for amounts paid to employees and notified to Revenue via the payroll process.
The reimbursement will, in general, be made within two working days after receipt of the payroll submission.
In April, the scheme will move to a subsidy payment based on up to 70% of the normal net weekly pay for each employee to a maximum of €410*.
Are you eligible?
The Scheme is available to employers from all sectors (excluding the public service and non-commercial semi-state sector) whose business activities are being adversely impacted by the COVID-19 pandemic.
It is open to employers who retain staff on payroll; some of the staff may be temporarily not working or some may be on reduced hours and/or reduced pay. Provided the employer meets the conditions set out below and, subject to the levels of pay to the employees, the employer may be eligible for the scheme for some, or all of its employees.
To qualify for the scheme, employers must?
be experiencing significant negative economic disruption due to Covid-19
be able to demonstrate, to the satisfaction of Revenue, a minimum of a 25% decline in turnover
be unable to pay normal wages and normal outgoings fully and
retain their employees on the payroll.
The Scheme is confined to employees who were on the employer’s payroll as at 29 February 2020, and for whom a payroll submission has already been made to Revenue in the period from 1 February 2020 to 15 March 2020.
After the scheme has expired, the names of all employers operating the scheme will be
published on Revenue’s website.
Registering for the Temporary Wage Subsidy Scheme
Any employer, already registered with Revenue for the purposes of the Employer COVID-19 Refund Scheme, is not required to take any further action. The employer may make payroll submissions from 26 March 2020 under the subsidy scheme arrangements on the same basis as they were doing for the Employer Refund Scheme, and €410 will be refunded in
respect of each eligible employee per week.
Employers, or their agents, wishing to register for the scheme can apply to Revenue by:
Log on to ROS myEnquiries and select the category ‘Covid-19: Temporary Wage
Subsidy’.
Read the “Covid-19: Temporary Wage Subsidy Self-Declaration” and press the
‘Submit’ button.
Ensure bank account details on Revenue record are correct. These can be checked
in ROS and in ‘Manage bank accounts’, Manage EFT’, enter the refund bank
account that the refund is to be made to.
To get in touch, please email info@joycecosolicitors.com and a member of our team will contact you.
