Dáil Éireann Debate, Tuesday - 7 July 2020
195. Deputy Ged Nash asked the Minister for Finance his plans to extend the temporary wage subsidy scheme beyond the scheduled deadline; if he plans a comprehensive audit of companies receiving the scheme to ensure they have met the stated criteria; and if he will make a statement on the matter. [14591/20]
View answerThe Temporary Wage Subsidy Scheme (TWSS) is provided for in section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020. The TWSS is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. Of necessity, the underlying legislation and the scheme itself were developed rapidly, having regard to the Government objective of providing financial assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced as a result.
The Government decided on 5 June 2020 to extend the TWSS until the end of August. The intention is to continue to monitor the scheme closely. I expect that decisions will be taken at an appropriate time on next steps for the TWSS beyond end-August. In this regard, the Deputy may also wish to note that the Programme for Government contains a commitment that the July Jobs initiative will set out a pathway for the future implementation of the Temporary Wage Subsidy.
I have been advised by Revenue that an employer compliance programme to ensure correct operation of the TWSS was announced on 23 June last and is now underway. Over 58,600 employers have already received subsidy payments under the TWSS. Revenue has commenced contacting these employers to confirm that the scheme is operating correctly and is seeking certain documentary evidence to establish that:
- employers participating in the scheme meet the eligibility criteria,
- employees are receiving the correct amount of subsidy, and
- the subsidy amount is being correctly identified in employee payslips.
In order to verify eligibility for the TWSS, Revenue is asking employers to summarise the impact of the Covid-19 restrictions on their business, the basis on which they reasonably anticipated a reduction of 25% or more in their turnover in Quarter 2 of this year and whether that reduction has occurred. In order to ensure that employees are being fairly treated and TWSS funds are being paid out as intended, Revenue is also seeking a sample of payslips in each case. Based on analysis of the material provided, Revenue may request more detailed information from some employers.
I understand, from Revenue, that providing this basic information should not impose a significant overhead and indeed that many employers have already provided an immediate and satisfactory response to the compliance checks. For many employers, a simple statement that, due to the nature of their business, they were required to close their premises and cease to trade for a significant part of Quarter 2 is sufficient to establish eligibility.
Nonetheless, Revenue has made it clear that it recognises the challenges faced by businesses at the present time and will provide additional time to any employers who are experiencing genuine difficulty in meeting the deadline for provision of the requested documentation. The compliance programme now underway is expected to last for several months and Revenue expects that it will confirm that the vast majority of employers are fully compliant in their operation of the TWSS.
