Employment Wage Subsidy Scheme (EWSS); What’s New?

During the midst of Covid19, a new Employment Wage Subsidy Scheme (EWSS) has been introduced by the Irish government on 23 July 2020 to support businesses and related human resources who were severely affected by the corona crisis. This existing COVID-19 Temporary Wage Subsidy Scheme, that is expiring on 31 August 2020 will be replaced by the new Employment Wage Subsidy Scheme and will be commenced from 01 September 2020 onwards.

This scheme grants a flat-rate subsidy to the employers on a weekly basis for a period of nine months starting from 01 September 2020 onwards. The eligibility is evaluated based on the number of qualifying employees on the payroll. This also includes seasonal staff and new employees.

How I can qualify to EWSS?

If you are an employer, you have to show your 30% reduction in turnover or your business orders between 01 July and 31 December 2020 and self declare to the Revenue that your business have been severely affected by the economic disruption caused by the COVID-19. You must also have a tax clearance certificate to be qualified for the scheme. This implies that those employers who are availing this scheme must be compliant with all obligations under the Irish tax legislation in the filing of income returns and tax dealings.

Also you have to note that this drop in revenue is relative to the same time in 2019 where the business was in existence prior to 01 July 2019.

Why this is important?

EWSS scheme is really a life saver to those businesses who got harshly affected in this pandemic.  With this financial support for the next nine months, some recovery of the business can be achieved. Therefore it is very much important for the employers to get enough knowledge about this scheme.

Also if you are an employer who has previously availed the Temporary Wage Subsidy Scheme (TWSS), it is important that you have to be conscious about the changes as the TWSS will come to an end by 01 September 2020.

How much subsidy will be available?

In brief, those employers who pay their employees’ normal wages will then receive a subsidy from the Revenue Department following the submission of the payroll. The subsidy details are as follows.

• No subsidy for employees earning below €151.50 and above €1,462 per week
• A subsidy of €151.50 will be available for employees who earns from €151.50 to €202.99 per week
• A subsidy of €203 will be available for employees who earns from €203 to €1,462 per week

How the monthly eligibility is defined?

This scheme will be following a monthly ‘self-assessment’ review process to define the eligibility for the upcoming months. It is the duty of the employers to evaluate their business on the last day of every month to make sure that they are still eligible. If they find no longer eligible, they have to deregister from the scheme as soon as possible.

If you have any other queries about your state of qualifying for this scheme, let us know. Our qualified and experienced Chartered Accountants will be there for your assistance.