As we had indicated from the inception of this Scheme, there were a number of amendments/clarifications required. As a result, four separate clarifications/revisions have issued to date being 27th March 2020, 31st March, 3rd April and, more recently, Sunday, 5th April.
The Revenue link containing FAQ (V.5) is as follows, for your information:- https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf
In particular:
- An employer that has been hit by a significant decline in business but has strong cash reserves, that are not required to fund debt, will still qualify for the Scheme but the Government would expect the employer to continue to pay a significant proportion of the employees’ wages.
- Calculation of average net weekly pay and impact of additional payment on subsidy.
- It should be noted while originally it stated that any employee on a salary of in excess of €75,000 gross was ineligible for the scheme, this has since been clarified as any employee whose average net weekly pay exceeds €960 is in-eligible under the scheme.
- It has also been confirmed that whilst Income Tax, USC, LPT (if applicable) and PRSI are not deducted from the Temporary Wage Subsidy, the employee will be liable for income tax and USC on the subsidy by way of review at the end of the year.
- They have updated their examples of calculations.
- They have also clarified the position that if an employee was not on payroll in January/ February as a result of for example maternity leave or on unpaid leave.
No doubt there will be further revisions and we will keep you advised.
