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Wage Subsidy Scheme

Dáil Éireann Debate, Tuesday - 30 June 2020

Tuesday, 30 June 2020

Ceisteanna (50)

Seán Fleming

Ceist:

50. Deputy Sean Fleming asked the Minister for Finance the position for companies operating the temporary wage subsidy scheme when some employees are brought back to work and other employees are not brought back; if employees that come back and are working go off the scheme and receive their full normal pay; if they are expected to work under the temporary wage subsidy scheme with no extra remuneration guaranteed; and if he will make a statement on the matter. [13197/20]

Amharc ar fhreagra

Freagraí scríofa

Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 is the legislation underpinning the Temporary Wage Subsidy Scheme (TWSS).  The Government’s priority in so far as the TWSS is concerned was, and is, to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for, and start to receive, payment quickly. The purpose of the scheme is to ensure that the relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once that is possible. Eligibility for the scheme can be satisfied by an employer once they meet the relevant criteria.  

The key criterial for eligibility for the scheme, as prescribed in the underlying law, are that: 

- the business is suffering significant negative economic impact due to the pandemic,

- the employees were on the payroll at 29 February 2020, and

- the employer had fulfilled its PAYE reporting obligations for February 2020 by, in general, 15 March 2020, but recently extended, by concession, to 1 April 2020.

The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme.

The TWSS scheme is available to eligible employers across all sectors, excluding the Public Service and Non-Commercial Semi-State Sector. This includes businesses that have closed due to the Covid-19 restrictions and those that continue to operate and employ their workforce.  The amount of the subsidy for each employee is calculated based on the average net weekly pay reported for January and February 2020.

There is no distinction made regarding the subsidy amount based on whether the business has closed for any defined period due to the restrictions brought in by the Government or has continued to trade with employees continuing to work full time or part time, with similar hours as before the Covid-19 pandemic.  Eligibility is not dependent on employees being in or out of the workplace. However, if the employment ceases to be eligible for the TWSS and/or the employer is no longer receiving a subsidy in respect of that person, the question of the particular employment arrangements that might apply between the employer and the employee is outside the remit the scheme.

The employer is expected to make best efforts to maintain the employee’s net income, reflected in the average net weekly payment for January and February 2020, for the duration of the TWSS. There is, however, no minimum amount that the employer must pay as an additional payment in order to be eligible for the scheme, but, for Revenue operational systems reasons, the employer will need to enter at least €0.01 in Gross Pay when running its payroll. 

If the employer makes an additional payment greater than the difference allowed by the scheme, then the subsidy value refundable to the employer will be reduced by this excess amount when the refund reconciliation is performed by Revenue in due course. The scheme is not prescriptive as regards the hours that must be worked.

Finally, Revenue published detailed guidance on employer eligibility and supporting proofs for the TWSS and it is available on the Revenue website:

https://www.revenue.ie/en/corporate/communications/documents/guidance-on-employer-eligibility-and-supporting-proofs.pdf

Question No. 51 answered with Question No. 26.
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