The TWSS is available to employers who keep employees on the payroll throughout the COVID 19 pandemic, meaning employers can retain links with employees for when business picks up.
Key Features of the scheme
From 4 May 2020, the subsidy payment will move to a system based on the Average Reported Net Weekly Pay (ARNWP). The calculation of ARNWP uses “Gross Pay” as reported to Revenue on the payroll submission for January and February 2020.
Where an employee’s ARNWP is greater than €586, tiering of the subsidy will apply depending on the additional gross payment paid to the employee by the employer. Revenue will use “current gross pay as reported” when calculating each tier.
Employers should pay the relevant subsidy to each employee and may make an additional payment so that the total pay does not exceed the average net weekly pay of the employee, in the reference period January/February 2020.
The subsidy scheme applies both to employers who make additional payments to their employees and those that are not in a position to do so.
Employers make this subsidy payment to their employees through their normal payroll process.
Employers will then be reimbursed for amounts paid to eligible 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.
Income tax and USC will not be applied to the subsidy payment made through the payroll.
Employee PRSI will not apply to the subsidy or any additional payment by the employer.
Employer’s PRSI will not apply to the subsidy and will be reduced from 11.05% to 0.5% on the additional ‘top-up’ payment from the employer.
If you have any questions on the operation of the scheme, Kay and her team will be delighted to assist you.