The Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed quickly, having regard to the objective of getting financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus.
The TWSS applies where the employer demonstrates to Revenue’s satisfaction that, by reason of Covid-19 and the resultant disruption that is being caused to the conduct of business commerce, there will occur in the period 14 March 2020 to 30 June 2020 at least a 25 per cent reduction in the turnover of the employer’s business or in customer orders being received by the employer. Revenue published detailed guidance on its website relating to employer eligibility and supporting proofs for the scheme. https://www.revenue.ie/en/corporate/communications/documents/guidance-on-employer-eligibility-and-supporting-proofs.pdf .
I have been advised by Revenue that, in its administration of the TWSS, the key focus at employer level is on satisfaction that the employer will in fact suffer significant negative economic disruption due to the COVID-19 pandemic. In instances where application of the “turnover” and “customer orders” tests referred to above do not adequately demonstrate this, an alternative “reasonable basis” should be applied. However, the starting position in such cases is that neither the turnover test nor the reduction in customer orders test is capable of being applied to the business in question. It is not sufficient that the business does not meet either of these tests. It must be the case that neither of those tests are capable of being applied to the business in question before an alternative basis for assessing eligibility is used.
There is no specific exclusion of financial institutions from eligibility to participate in the TWSS. However, given the possibility that different economic models may be used, each Credit Union considering its eligibility for participation in the scheme can approach Revenue directly to outline its concerns and queries on eligibility.
