Emergency Measures in the Public Interest (Covid-19) Act 2020 section 28

Covid-19: Temporary Wage Subsidy Provisions (TWSS)

Section 28 establishes the Temporary Wage Subsidy Scheme (TWSS), a Government-funded programme operated by Revenue to help employers retain employees on their payroll during the Covid-19 pandemic by subsidising a portion of their wages.

• The TWSS ran from 26 March 2020 to 31 August 2020 and applied to employees who were on the employer's payroll by 29 February 2020, with qualifying employers required to demonstrate at least a 25% decline in turnover or customer orders due to Covid-19.
• Revenue paid the temporary wage subsidy directly to the employer by bank transfer, and the employer was required to pass this on to the employee as an additional amount on top of whatever emoluments the employer could afford to pay, with the subsidy capped at 70% of net weekly pay for those earning up to €586 per week and no subsidy for those earning over €960 per week.
• The subsidy was not subject to PAYE, USC or employee PRSI at source but was taxable as Schedule E income of the employee, to be collected by review at year end, and the employer could not claim a tax deduction for the subsidy amount passed on to employees.
• Employers who did not pass on the subsidy to employees or who were not entitled to receive it must refund the amounts to Revenue, with such refunds treated as income tax due from the date of payment, carrying daily interest of 0.0219%, and criminal penalties apply for knowingly providing incorrect information in connection with the scheme.

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