Wage Subsidy Scheme Issues

Seve OB

Nice one thanks Collsoft

Seve OB

https://www.thejournal.ie/budget-2022-covid-supports-5572217-Oct2021/

so I take out of that there will be no change in November and from December it will be case of if the gross wage is less than a certain amount yet to be disclosed ( my guess based on nothing more than common sense, which might not make sense given that is a hardly used tool in governmental decisions 😝) you will receive a subsidy of €151.50 and if the gross wage is above it then you will get a subsidy of €300.

for March and April it will most likely be a one rate subsidy of the €151.50…, but again, I’m just speculating.

also would note that if you drop out of qualifying, you won’t get back in after January 1st

and one thing I don’t have a clue would be the current qualifying criteria is a 30% drop in turnover, will this increase????? And it is currently a cumulative figure for all 2021 turnover, will it reset as and from January 1 2022???? that would likely rule out a lot of firms who are just getting back up on the horse after a long period of suffering and Might be down 25% on monthly figures but maybe ytd

Seve OB

So I’m sure most of you have seen the proposed new rates.

€151.50 & €203 will apply for December, January and February. Reduced rate of Employers PRSI still in place.

€100 for March and April. No more reductions for Employers PRSI.

But the revenue still haven’t updated their website. The document there still says Do any of the payroll guys here have any idea on what the bands for these new subsidy rates will be?

I’m sure they might be the same as current but it’s just a guess. Revenue need to tell us.

also, current qualification relies on a cumulative turnover figure for the year to date. How will this be calculated come January. Will it just compare january 2021 turnover or will it be some sort of rolling cumulative?

collsoft

Hi Seve,

I have been waiting for the guide to be published as well - just in case there are any little surprises :)

Revenue published a quick Budget guide at https://www.revenue.ie/en/corporate/press-office/budget-information/2022/budget-summary-2022.pdf

On page 2 there is a table showing all the rates that apply from now until end of April 2022;

In terms of eligibility it still relates to 2021 versus 2019, so if you are still eligible on 31st December you can continue to avail of EWSS until end of April. The same guide states that;

"The EWSS provides a wage subsidy to eligible employers in respect of qualifying employees. EWSS will close to new employer registrations from 1 January 2022 and will conclude on 30 April 2022. Eligibility for the scheme will continue to require a 30% reduction in turnover/customer orders in the full year 2021 as compared to the full year 2019. Businesses that qualify for entry to the scheme as at the last day of December 2021 may continue to avail of the EWSS until 30 April 2022."

Hope this helps :)

https://www.boards.ie/discussion/comment/118106291#Comment_118106291

Seve OB

Thanks for that Collsoft. Great help

jammiedodgers

https://twitter.com/rtenews/status/1468903133015384064

Looks like it's also going back to previous rates for December & January.

Seve OB

Nice one

collsoft

Well just to clarify a few things about this announcement;

1) Revenue will start a sweepback process some time next week to go back and recalculate all the December subsidies at the enhanced rates.

2) Revenue will repay any shortfalls in the EWSS already paid to employers in December. Timelines to be confirmed, but I expect they wont take too long.

3) Employers do not need to make any changes or resubmit any of their existing December Payrolls - Revenue will do all the heavy lifting on this.

4) Strictly speaking you do not even need to update your Payroll software for these changes. Payroll software only sets an "EWSS Marker" on your payslips, it does not actually claim an amount of EWSS from Revenue. Revenue calculate your EWSS entitlement on their side based on the Gross pay and insurable weeks on the Payroll Submission.

5) If your Payroll Software produces an EWSS subsidies report then you might need an update to reflect the new rates for December, but this is only for reporting in the software. You will still be paid the correct amount by Revenue, its just the report in the software might be wrong.

6) There was no mention today about the Employers PRSI credit. It was due to be removed on 1st March and I presume that this is still the case. But for now the rate of Employers PRSI continues to be 0.5% for those on EWSS

Now, time to go and retrofit an upgrade into two years of payroll software to undo the upgrade we released two weeks ago!!!!!!

Seve OB

https://www.boards.ie/discussion/comment/118119505#Comment_118119505

are we back to these rates from this month?

Tow

From the 1 Feb back to the 'Normal' EWSS Rates unless your business had to close early due the 'Public Health Restrictions' in December. If effected you can claim 'PHR EWSS', which extends the 'Enhanced' Rates and scheme wind down by a month.

Seve OB

Will reduced rates be payable @€203 per week now till the end of April and then @€100 per week till end June?

ie extend by the 2 months or re there going to be cuts made sooner now that life is starting to get back to normal.

Seve OB

Never mind

found the document. Looks like they are keeping the original end date of 30 April

unless affected businesses, who will run till 31 May