Key operational points for the newly announced COVID-19 Wage Subsidy Scheme
- The scheme will be operated through the payroll process
- Employers or their agents are to register for the scheme via ROS:
1. Log on to ROS myEnquiries and select the category ‘Covid-19: Temporary Wage Subsidy’.
2. Read the “Covid-19: Temporary Wage Subsidy Self-Declaration” and press the ‘Submit’ button.
3. Ensure bank account details on the Revenue record are correct. These can be checked in ROS and in ‘Manage bank accounts, ‘Manage EFT’, enter the refund bank account that the refund is to be made to.
- Replaces the previous COVID-19 Employer Refund Scheme.
- The scheme is expected to last 12 weeks from the 26th March 2020.
- Initially, the subsidy scheme will refund employers up to €410 per qualifying employee per week, regardless of their normal income
- In April 2020, further guidance to issue by the revenue, and refund to be based on level of employees normal net weekly pay (up to 70% of normal net weekly pay to be covered under the scheme subject to caps based on income level).
- The reimbursement will, in general, be made within two working days after receipt of the payroll submission.
- Employers should pay no more than the normal take home pay of an employee, although they may top-up payments in excess of the subsidised amount.
Employers must meet the following criteria in order to qualify for the subsidy scheme
- Retain their employees on the payroll
Income tax and USC will not be applied to the subsidy payment through the payroll. Employee PRSI will not apply to the subsidy or any top up payment by the employer. Employer’s PRSI will not apply to the subsidy and will be reduced from 11.05% to 0.5% on the top up payment.
- Be experiencing significant negative economic disruption due to COVID-19
- Be unable to pay normal wages and normal outgoings fully
- Must show a minimum decline in turnover of 25%
In the period of 14 March 2020 to 30 June 2020, there will be at least a 25% reduction either in the turnover of the employer’s business or in customer orders being received by the employer.
Read also FAQ temporary covid-19 wage subsidy and find out more information.