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Does the Covid 19 Revenue subsidy have to be repaid in future

  • 31-03-2020 9:47pm
    #1
    DavidAdam
    Registered Users Posts: 61 ✭✭


    Look the following extract from Revenues Website. It appears to me that the Revenue subsidy is repayable in the future

    4.4. Example of a calculation of Average Net Weekly Pay
    Calculate Employee's Average Net Weekly Pay
    Pay Date Insurable
    weeks
    Gross Pay Income tax
    paid
    USC
    paid
    Employee
    PRSI paid
    Net weekly
    pay as reported to
    Revenue
    Fri 03-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 10-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 17-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 24-Jan-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 31-Jan-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 07-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 14-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 21-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 28-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Totals 9 2,597.76 30.90 18.75 0.00 2,548.11
    Employee's Average Net Weekly Pay (ANWP) €2,548.11 / 9 = 283.12
    Payroll details for 27 March 2020
    Frequency Weekly
    Insurable weeks 1
    PRSI Class (Employee 0%, Employer 0.5% on taxable pay) J9
    Non taxable pay - (70% of Average Net Weekly Pay) 198.18
    Taxable pay - Employer contribution (optional) 0.01
    Gross pay 198.19
    Subsidy refund received from Revenue 410.00
    Balance of payment due to be refunded to Revenue in future 211.82


Comments

  • #2
    Just Saying
    Registered Users Posts: 305 ✭✭Just Saying


    DavidAdam wrote: »
    Look the following extract from Revenues Website. It appears to me that the Revenue subsidy is repayable in the future

    4.4. Example of a calculation of Average Net Weekly Pay
    Calculate Employee's Average Net Weekly Pay
    Pay Date Insurable
    weeks
    Gross Pay Income tax
    paid
    USC
    paid
    Employee
    PRSI paid
    Net weekly
    pay as reported to
    Revenue
    Fri 03-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 10-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 17-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 24-Jan-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 31-Jan-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 07-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 14-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 21-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 28-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Totals 9 2,597.76 30.90 18.75 0.00 2,548.11
    Employee's Average Net Weekly Pay (ANWP) €2,548.11 / 9 = 283.12
    Payroll details for 27 March 2020
    Frequency Weekly
    Insurable weeks 1
    PRSI Class (Employee 0%, Employer 0.5% on taxable pay) J9
    Non taxable pay - (70% of Average Net Weekly Pay) 198.18
    Taxable pay - Employer contribution (optional) 0.01
    Gross pay 198.19
    Subsidy refund received from Revenue 410.00
    Balance of payment due to be refunded to Revenue in future 211.82

    Yes.Any excess will have to be repaid.However the flat rate payment will be modified to the 70% figure at some stage during April.


  • #3
    fly_agaric
    Registered Users, Registered Users 2 Posts: 4,963 ✭✭✭fly_agaric


    DavidAdam wrote: »
    Look the following extract from Revenues Website. It appears to me that the Revenue subsidy is repayable in the future

    4.4. Example of a calculation of Average Net Weekly Pay
    Calculate Employee's Average Net Weekly Pay
    Pay Date Insurable
    weeks
    Gross Pay Income tax
    paid
    USC
    paid
    Employee
    PRSI paid
    Net weekly
    pay as reported to
    Revenue
    Fri 03-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 10-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 17-Jan-20 1 270.60 3.22 1.95 0.00 265.43
    Fri 24-Jan-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 31-Jan-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 07-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 14-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 21-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Fri 28-Feb-20 1 297.66 3.54 2.15 0.00 291.97
    Totals 9 2,597.76 30.90 18.75 0.00 2,548.11
    Employee's Average Net Weekly Pay (ANWP) €2,548.11 / 9 = 283.12
    Payroll details for 27 March 2020
    Frequency Weekly
    Insurable weeks 1
    PRSI Class (Employee 0%, Employer 0.5% on taxable pay) J9
    Non taxable pay - (70% of Average Net Weekly Pay) 198.18
    Taxable pay - Employer contribution (optional) 0.01
    Gross pay 198.19
    Subsidy refund received from Revenue 410.00
    Balance of payment due to be refunded to Revenue in future 211.82

    No expert, but AFAIK the employers are not supposed to get more than (edit: 70%) of "Average Net Weekly Pay" for the employee. In your example the max amount of EUR410 is more than that so presume that is why some would have to be paid back.
    I think it is intended for covering or partly covering the wages of employees so they don't need to be laid off, not as general "free money" for employers/companies (some for covering wages, rest for pocketing).


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