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Covid-19 Pandemic Supports

Dáil Éireann Debate, Wednesday - 20 May 2020

Wednesday, 20 May 2020

Ceisteanna (62)

Mary Lou McDonald

Ceist:

62. Deputy Mary Lou McDonald asked the Minister for Finance if, further to the Revenue Commissioners announcement of 24 April 2020 allowing access to temporary wage subsidy scheme for certain employers that missed 15 March 2020 payroll deadline, those businesses granted access to the scheme will be paid retrospectively in respect of wages paid in the intervening period of the scheme opening and their access to it. [5629/20]

Amharc ar fhreagra

Freagraí scríofa

The Temporary Wage Subsidy Scheme (TWSS) is an emergency measure to deal with the impact of the Covid-19 pandemic on the economy. The scheme builds on data returned to Revenue through its real-time PAYE system. It must be accepted that the underlying legislation and the scheme itself simply cannot be tailored to meet every individual unique set of circumstances for either employers or employees. The core principles of the scheme, as prescribed in the underlying law, are that the business is suffering significant negative economic impact due to the pandemic, that the employees were on the payroll on 29 February 2020 and that the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020.  These requirements of the scheme were critical safeguards against abuse and exploitation of the scheme.  

I have been advised by Revenue that following a review of cases since the TWSS commenced, it became apparent that a number of employers had been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue announced on 24 April, under its care and management provisions, to allow such employers access the scheme provided:

- the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020,

- the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and 

- the payroll submissions for all previous months were submitted to Revenue before 15 March 2020.

Where a business qualifies for the scheme under the revised criteria and makes the necessary declaration that it is significantly impacted by the crisis, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020.  However, subsidies for the earlier period are not made retrospectively and there are no plans to alter this.

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