Revenue has given more details to employers about changes to the Employment Wage Subsidy Scheme (EWSS) announced by Minister for Finance Paschal Donohoe earlier this week.

The scheme, which aims to encourage firms to retain staff, was revised to bring it more into line with Pandemic Unemployment Payment (PUP) rates.

Revenue says the revised EWSS rates will operate until 31 January 2021 in respect of payroll submissions with pay dates on or after 20 October.

Temporary closure

As an example, an employer currently availing of the EWSS for an employee on a weekly wage of €350 will see the subsidy increase from €203 per week to €300 per week. For an employee on a weekly wage of €475, the subsidy has increased from €203 per week to €350 per week.

The EWSS is also available to employers who have had to temporarily close their business due to level five public health restrictions. This applies for eligible workers that are kept on the payroll while the businesses are closed.

Revenue also says it is trying to significantly shorten further the timeframe for EWSS payments.

The EWSS was originally designed to pay the subsidy due once a month in arrears, but on 6 October, Revenue announced that it had brought forward the date for EWSS payments to the fifth day of the following month.

Revenue now says, however, that the first EWSS payments for November payrolls will be made in early November, rather than by 5 December. Subsequent payments for November will be paid following the receipt of a payroll submission containing an EWSS claim.

Cashflow boost

Revenue says this means EWSS will be paid on a similar basis to the Temporary Wage Subsidy Scheme (TWSS), to provide a cashflow boost for businesses.

The tax body also points out that, due to new public health restrictions, employers who previously did not qualify for EWSS may now be able to show the necessary 30% reduction in turnover or customer orders between 1 July and 31 December 2020.

“Revenue is reminding employers that it is still possible to register for EWSS once all qualifying criteria are met,” it says.