EWSS - Overview
The Employment Wage Subsidy Scheme (EWSS) replaces the Temporary Wage Subsidy Scheme (TWSS) from September 1st 2020.
Comprehensive Revenue guidance has been published with regard to the operation of the Employment Wage Subsidy Scheme which can be accessed here.
Please find below an overview with regard to how the scheme operates and to help you prepare for it should you choose to avail of it.
Employment Wage Subsidy Scheme - Overview
- The scheme provides a flat-rate subsidy to qualifying employers based on the number of paid and eligible employees on the employer’s payroll. The scheme is expected to operate until 31st March 2021.
- Eligible employers are required to register for the EWSS via ROS.
- Employers must hold up to date tax clearance to register for the scheme and receive the subsidy payments.
- Employers must ensure they meet the eligibility criteria for EWSS.
Please note: there has been a change to the qualifying criteria for pay dates on or after 1st January 2021. The change relates to the periods to be used for assessing the minimum 30% reduction in sales/orders. Where employers have been availing of EWSS in 2020, they will now need to review expected turnover for the 6 months to 30th June 2021 versus the 6 months ended 30th June 2019 (not 2020).
Further information on the qualifying criteria can be found on the Revenue website .
- Employers must review their eligibility status on the last day of every month to ensure they continue to meet the eligibility criteria, if they no longer qualify they should deregister for EWSS with effect from the following day (1st of the month).
The rates of subsidy provided under the Employment Wage Subsidy Scheme (EWSS) have been revised to better support businesses.
The following revised rates are currently effective until March 31st 2021.
Please note: gross pay includes notional pay and is before any deductions for pension, salary sacrifice etc.
- Under the EWSS, employers are required to pay employees in the normal manner i.e. calculating and deducting Income Tax, USC and employee PRSI through the payroll.
- EWSS is a subsidy paid to an employer, it will not show on payslips or in myAccount.
A 0.5% rate of employers PRSI applies to employments that are eligible for the subsidy. This operates as follows:
- PRSI is to be calculated as normal via payroll e.g. on PRSI class A1.
- Revenue will then calculate a PRSI credit by calculating the difference between the rate on the normal class and the 0.5%.
- The credit will show on the Statement of Account to reduce the employer’s liability to Revenue.
A list of employers availing of EWSS will be published in January 2021 and April 2021 to www.revenue.ie