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.
It is recommended that you fully familiarise yourself with the Scheme Guidelines.
Employers must also determine that they meet the Scheme's qualifying criteria. If so, employers will then be required to register for the EWSS via ROS before they can avail of the Scheme.
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 .
An overview of the Scheme is available here .
Although the EWSS is a subsidy payable to employers only and will not impact employee payslips, the scheme must still be administered through the payroll.
The steps to complete within the software are provided below.
Eligible employers will be required to register for the new EWSS scheme via ROS.
Once registered and to start claiming EWSS for employees, employers must use their periodic payroll submission (PSR) to notify Revenue of the employees they wish to claim EWSS for (see Step 2 below).
In order for the PSR in Thesaurus Payroll Manager to include an EWSS marker for an eligible employee, you must first enter your EWSS registration date within the software. This is a once-off exercise.
Once you have registered for EWSS and have entered your registration date in the software, you are now ready to instruct Thesaurus Payroll Manager which employees you wish to claim EWSS for. This instruction will place an EWSS marker on the payroll submission for each applicable employee in order to notify Revenue which employees you wish to claim EWSS for.
a) This can be done on an individual basis by accessing an eligible employee's record within 'Add/Amend Employees'.
b) Alternatively, a utility is available within the EWSS menu to simultaneously set the EWSS marker for all employees on your selected pay frequency:
When using this utility, the following message prompt will advise you to subsequently review any employees afterwards within Add/Amend Employees who may not be eligible for EWSS:
Where you are aware that an employee isn't eligible for EWSS, simply access their employee record within Add/Amend Employees and untick the EWSS marker within their Revenue Details utility, followed by 'Update':
After performing the above steps, you are now ready to process your payroll.
Under EWSS, employers are required to pay the employee as normal, calculating income tax, employee PRSI and USC in the normal manner.
On finalising each pay run, your associated payroll submission (PSR) will notify Revenue of the employees you wish to claim EWSS for. Submit this to Revenue in the normal manner.
On receipt of your payroll submission, Revenue will then determine the applicable subsidy amount payable.
Important Notes to the above:
Where an employee's gross pay amount is outside of the limits and they have been marked as being an eligible employee for EWSS, the EWSS marker will not be included on the associated payroll submission for that employee.
(Gross pay includes notional pay and is before any deductions for pension, salary sacrifice etc.)
Whilst in Weekly/Monthly/Fortnightly Input (Process icon 3), where it is detected that the employee's gross pay is outside the limits, this will be brought to your attention when clicking 'Update File':
Likewise, the Payroll Preview (Process icon 4) will also prompt you where employees' gross pay amounts are outside the EWSS pay limits:
4. A 0.5% rate of employer PRSI applies for employments that are eligible for the subsidy.
Employer PRSI however must be calculated as normal via payroll e.g. on PRSI class A1. Revenue will subsequently calculate a PRSI credit by calculating the difference between the employee's rate reported via the payroll submission and the 0.5%.
This credit will then show on the Statement of Account within ROS and reduce the employer’s liability to Revenue.
On confirmation of the PRSI Credit, users may wish to balance their Tax Details report by entering the amount credited to them:
Employers must review their eligibility status on the last day of every month to ensure they continue to meet the eligibility criteria.
Where you no longer qualify, you should de-register for EWSS with effect from the following day (1st of the month).
In this instance, you must also instruct the software that you wish to stop claiming EWSS for your employees.
To do this, simply go to EWSS > Stop claiming EWSS for all employees:
This routine will remove the EWSS marker for all your employees on your chosen pay frequency, so that their EWSS eligibility will no longer be reported through the payroll submission. Click 'Yes' to complete the action.
An EWSS Report is provided under the EWSS menu in order for you to review expected EWSS subsidy amounts, as well as PRSI credits.
This report assumes that the employer qualifies for EWSS and that each of the employees are eligible. If tax clearance expires and is not renewed, EWSS claims might not be paid by Revenue.
This report can be copied for export into Excel.
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