Dáil Éireann Debate, Tuesday - 10 November 2020
306. Deputy Michael Fitzmaurice asked the Minister for Finance if a company (details supplied) qualifies for the employment wage subsidy scheme based on the information provided; and if he will make a statement on the matter. [34632/20]
View answerThe Employment Wage Subsidy Scheme (EWSS) commenced on 1 September 2020 and is to continue until 31 March 2021. The scheme replaced the Temporary Wage Subsidy Scheme (TWSS) which ceased on 31 August 2020.
The EWSS, which operates on a self-assessment basis, differs from the TWSS in that it provides a flat-rate subsidy to qualifying employers based on the number of qualifying employees on their payroll and the level of gross weekly pay per employee. The level of gross weekly pay per employee, which must be between €151.50 and €1,462, determines the amount of subsidy payable. Where businesses have no employees, they are ineligible for EWSS and no subsidy is payable. The eligibility criteria also require businesses to be tax cleared and to be able to demonstrate a reduction in turnover or business orders of at least 30% between 1 July 2020 and 31 December 2020 due to COVID-19 related disruption.
The reduction in turnover or customer orders between 1 July and 31 December 2020 should be based on comparisons with the same period in 2019, where a business was in existence prior to 1 July 2019. Where a business started trading between 1 July 2019 and 1 November 2019, the comparison should be based on the period from commencement date to 31 December 2019. Where a business started trading after 1 November 2019, the comparison should be based on projected turnover or projected customer orders for 1 July 2020 to 31 December 2020.
It is not possible for Revenue to determine if the business will qualify for the subsidy in the future as the EWSS operates on a self-assessment basis. This places the onus on the business to determine whether it meets the eligibility criteria for the scheme, having regard to Revenue’s published guidance. It also requires that any application for the scheme is supported by a business case that clearly sets out how COVID-19 restrictions have negatively impacted on its operations.
