Wage Subsidy Scheme Issues

blackwhite

noodler wrote: »

Pretty sure it says the employer does.not have to deduct.

Not that they cannot.

See section 1.7

Not only does the guidance state you must pay over the subsidy in full, the legislation also states this

Under section 28(5)(d) of the [Covid-19] Act, the employer must pay to the employee “an additional amount equivalent to the wage subsidy”, which means the subsidy amount must be paid to the employee in full.

The_Chap

Happy4all wrote: »

over how long a period does an employer's have to be down 25% ?

The declaration by the employer is not a declaration of insolvency. The declaration is simply a declaration which states that, based on reasonable projections, there will be, as a result of disruption to the business caused or to be caused by the Covid-19 pandemic, a decline of at least 25% in the future turnover of, or customer orders for, the business for the duration of the pandemic and that as a result the employer cannot pay normal wages and outgoings fully but nonetheless wants to retain its employees on the payroll

highgiant1985

LJ_20 wrote: »

Correct, it was unpaid maternity leave. However, the document I referenced says the below;

"4.6 What if an employee was not on Payroll in January or February 2020?
There can be cases where an employee was in employment but who did not receive normal pay in January or
February 2020, such as reduced pay, maternity leave or off-pay leave. In such cases the employer can either:
• operate the scheme based on Average Net Weekly Pay,
• pay the employee the appropriate wages without receiving a subsidy refund, or
• the employee may decide not to participate in the Temporary Wage Subsidy Scheme and instead apply
directly to the Department of Employment Affairs and Social Protection for the Pandemic Unemployment
Payment."

I would have thought this section covers me as it's for employees that were not on payroll in January or February. I am really surprised that maternity leave may not be protected here.

if you read what you posted it says

• operate the scheme based on Average Net Weekly Pay, -- you have no pay in Jan/Feb so your average net weekly pay is 0. So with this choice you get 0.

"• pay the employee the appropriate wages without receiving a subsidy refund,"
-- I.e. No refund for the employer. If the employer can pay you still their decision but given no refund for them there's 0 incentive for them to do so.

• the employee may decide not to participate in the Temporary Wage Subsidy Scheme and instead apply directly to the Department - this is in reality the most likely option unless ER has reserves to keep you on otherwise.

highgiant1985

Seve OB wrote: »

Yes that’s the correct section. Previous poster highgiant is incorrect. Show this document to your employer. As I say, call revenue and explain to them the situation and they can guide you.

If the ER is struggling they will not process the employee through the scheme as there's no benefit to the ER in doing so as they'll get nothing back from Revenue.

Seve OB

highgiant1985 wrote: »

If the ER is struggling they will not process the employee through the scheme as there's no benefit to the ER in doing so as they'll get nothing back from Revenue.

The benefit is that the employee stays on the books as an employee as opposed to going on the live register.

highgiant1985

Seve OB wrote: »

The benefit is that the employee stays on the books as an employee as opposed to going on the live register.

Fair enough accepted re the employee benefit but from an employer perspective if they don't have the money that's useless to them and they'll say i just don't have the money to pay you.

Seve OB

highgiant1985 wrote: »

Fair enough accepted re the employee benefit but from an employer perspective if they don't have the money that's useless to them and they'll say i just don't have the money to pay you.

it doesn't have to cost the employer a shilling

blackwhite

Seve OB wrote: »

it doesn't have to cost the employer a shilling

It’ll cost them approx €1.75 per employee minimum - 0.5% employers PRSI 😂

gb19815

Guys what happens with bank holiday this Monday ? Are we entitled to be paid for it if getting subsidy payment ?

Tow

gb19815 wrote: »

Guys what happens with bank holiday this Monday ? Are we entitled to be paid for it if getting subsidy payment ?

It is a flat amount if money, based on your pay frequency. Holidays and Bank Holidays do not come into it.

eh i dunno

For anyone waiting on their first 70% covid payment you can look forward to a nice tax refund from the revenue on your first payment. Pleasant surprise when I got paid today.

kennethsmyth

eh i dunno wrote: »

For anyone waiting on their first 70% covid payment you can look forward to a nice tax refund from the revenue on your first payment. Pleasant surprise when I got paid today.

Thats a double edged sword. You will have less tax allowances once you are back at work and hence less net pay in future during this tax year or less allowances over next year.

Advice is to ask your employer to put you on a week one basis so you only receive tax credits for each individual week.

eh i dunno

kennethsmyth wrote: »

Thats a double edged sword. You will have less tax allowances once you are back at work and hence less net pay in future during this tax year or less allowances over next year.

Advice is to ask your employer to put you on a week one basis so you only receive tax credits for each individual week.

Cheers but I won't be spending it anyway. The next payslip will be the frightening one.

han2000

kennethsmyth wrote: »

Thats a double edged sword. You will have less tax allowances once you are back at work and hence less net pay in future during this tax year or less allowances over next year.

Advice is to ask your employer to put you on a week one basis so you only receive tax credits for each individual week.

Even if you switch to week one basis, you will still owe tax after the year end. The subsidy is not treated as taxable until then.

I just did a quick pay summary for myself for the year, if I switch to week one basis I will still owe €260 tax at the year end, if I stay on cumulative basis I will have an extra €538 in my take home pay in 2020 but will owe this plus the €260 above back to Revenue after the year end.

kennethsmyth

han2000 wrote: »

Even if you switch to week one basis, you will still owe tax after the year end. The subsidy is not treated as taxable until then.

I just did a quick pay summary for myself for the year, if I switch to week one basis I will still owe €260 tax at the year end, if I stay on cumulative basis I will have an extra €538 in my take home pay in 2020 but will owe this plus the €260 above back to Revenue after the year end.

Correct but my advice is so that you mitigate the possibility of a real reduction in net income in the future, they are going to tax it anyway I wouldn't like to add on taking the tax refunds also into account as its going to hurt.

Pistachio19

kennethsmyth wrote: »

Correct but my advice is so that you mitigate the possibility of a real reduction in net income in the future, they are going to tax it anyway I wouldn't like to add on taking the tax refunds also into account as its going to hurt.

Your advice contradicts the advice previously given on this thread:

"Why did you move staff to week 1 basis? Unless told to by revenue you should never do this, indeed, revenue don’t even tell you that it’s ok to do this now, it should be all done via the rpn’s"

Where did you get your advice to move staff to week 1?

Seve OB

blackwhite wrote: »

It’ll cost them approx €1.75 per employee minimum - 0.5% employers PRSI 😂

There is no employer prsi on the subsidy. Only on the top up

Seve OB

kennethsmyth wrote: »

Advice is to ask your employer to put you on a week one basis so you only receive tax credits for each individual week.

That is bad advice. Your payroll operator should never ever change your status from cumulative to week 1 off their own bat. They must go by the rpn which is updated before every pay run.

You could ask the revenue to move you to a week 1 basis though.

blackwhite

Seve OB wrote: »

There is no employer prsi on the subsidy. Only on the top up

Sorry - you're right. Had been looking at the guidance again after a glass or two of red

Seve OB

blackwhite wrote: »

Sorry - you're right. Had been looking at the guidance again after a glass or two of red

been there!:P

han2000

kennethsmyth wrote: »

Correct but my advice is so that you mitigate the possibility of a real reduction in net income in the future, they are going to tax it anyway I wouldn't like to add on taking the tax refunds also into account as its going to hurt.

Very true, I'm thinking myself that I'm going to stay on cumulative basis and any the extra net pay I receive for the next few weeks I will put aside with no intention of spending it.

Just given the way things are at the minute I'd rather have any extra cash at hand just in case things get worse work wise.

CaoinDory

Hi guys,

So OHs employer put him on the covid payment about 2 wks ago. But he rang today and asked him to come in on Tuesday saying that he can work a certain amount of hours without affecting the payment.

I've tried reading citizens info but I'm very confused. Does anyone know if this is true? (Employer tends to bs alot!)

**EDITED TO ADD- It is meant to be am essential service that hes doing***

biko

Some info here your OH can dig through.

https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/

Possibly this applies

If you have been temporarily placed on a shorter working week, you may qualify for Short Time Work Support.

Masala

Question.... does an employer HAVE to top up to the level of the Wk1-Wk09 average??

EG.... John worked a ball of overtime for January cost Pat his mate did only bare 39 hrs. They both on same rate. But John average take home for the 9 weeks was say €800 and Pat average (on 39hr weeks as he did very little OT) was €580. If both worked 39 hrs at same rate they would each come put with say €550 for argument sake. What figure has the employer to pay Pat as part of this scheme? Covid19 subsidy + Top up = €800 or Covid19+Topup = €550.

Jeez... this is a minefield!

CaoinDory

biko wrote: »

Some info here your OH can dig through.

https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/

Possibly this applies

I was looking at that. But hea already been put onto the covid payment. Would this be something different?

Seve OB

No requirement to top up at all

eh i dunno

https://twitter.com/FergalBowers/status/1248575820060405760?s=09

They should publish the names of the companies who contributed nothing

Seve OB

eh i dunno wrote: »

https://twitter.com/FergalBowers/status/1248575820060405760?s=09

They should publish the names of the companies who contributed nothing

Why? Do they Normally publish the pay rates of individual companies?


Some companies may not have a shilling and be closed up but are operating the scheme. So your witch hunt won’t show a true picture.

anonymous08

Why is 76K gross quoted as the limit in many places and nett figure 960 PW quoted in other places.


Surely a gross figure would be more equitable etc.


Also, how is the estimated pay calculated is it pay in 2019 or the 1st 2 months of 2020

Fanirish

Question: if employee was on unpaid compassionate leave for January are these excluded in the calculation of average weekly pay for the scheme?