The Employment Wage Subsidy Scheme (EWSS) has been extended until 31st December 2021 (previously due to finish on 30 June 2021).
The main changes are as follows:
- The current rates of payment will continue until 30th September and the requirement for a 30% reduction in turnover remains.
- For Q4 of 2021 the government has yet to decide on the payment rates or whether an increased employer contribution will be required.
- In terms of employer eligibility for the extended EWSS, the only notable immediate change until 30 September 2021 is that the reference period is for the full 12 months of 2021 compared to the full 12 months of 2019. The reference period previously was the first 6 months of 2021 compared to the first 6 months of 2019. What this means is that from July onwards if you believe your turnover will not be down 30% for the full year compared to 2019 then you will no longer qualify for the scheme.
To qualify for the EWSS for the remainder of 2021, businesses must expect to experience at least 30% reduction in turnover/customer orders by comparing the actual reported turnover for the period January to December 2019 against the financial predictions for the period January to December 2021 and have a valid tax clearance certificate.
The eligibility for the EWSS must be reviewed on the last day of each month. If the business is no longer eligible then the business must de-register for EWSS from the following day. If circumstances change then the business can re-register again.
The EWSS is indicated in the payroll submission report to Revenue and Revenue will calculate the subsidy due based on the gross pay, pay frequency and insurable weeks.
EWSS will generally be paid to the employer within two workings days of the payroll submission. A 0.5% rate of Employer PRSI applies for employments that are eligible for the subsidy and this will be refunded on the statement of account as a credit.