Temporary Wage Subsidy Scheme (“TWSS”): Employer Compliance Check

Posted in Income Tax, PAYE/PRSI

Revenue have now commenced a review on compliance with the Temporary Wage Subsidy Scheme (‘TWSS’) by contacting employers who have received TWSS payments.

Revenue is seeking documentary evidence to establish that:

  • The scheme eligibility criteria are met
  • The correct amount of subsidy is being claimed and paid to employees
  • The subsidy amount is being correctly identified in employee payslips
  • The scheme is operating correctly.

Generally, the information Revenue will require is:

  • An outline of the business and its principal activities
  • Name of the payroll operator
  • Summary of the impact of the COVID-19 restrictions on business turnover
  • Confirmation that payslips were issued to all employees for all relevant periods
  • Confirmation that payslips displayed the scheme subsidy amount
  • Copies of payslips for certain employees and pay periods.

There are only five days to respond to the Revenue’s request. Revenue may cease payments to employers who do not reply within the five days or who are not complying with conditions of the scheme.

Revenue may look for more detailed information depending on responses received.

As part of its review Revenue may also check that the PAYE real time system is being operated correctly by the employer and whether there are any outstanding tax returns.

Where the employer has outstanding returns, they will be unable to avail of the favourable Debt Warehousing arrangements in respect of PAYE and VAT liabilities.

On receipt of contact by Revenue, you should act ASAP.

Leave a Reply