Tax Tips June 2020
COVID-19: Latest updates on the Temporary Wage Subsidy Scheme (TWSS)
Last week, Revenue released version 12 of the FAQ, Guidance on the Operational Phase of the COVID-19: Temporary Wage Subsidy Scheme (TWSS). At paragraph 2.8, it clarifies that from Monday, 18 May, the Employer CSV File will include information on employees who were on the employer’s payroll on 29 February, were laid off and subsequently rehired after 1 May 2020. Revenue updated the Employer CSV files to include rehired employees notified to Revenue between 2 May 2020 and 17 May 2020.
TWSS: Rehired employees
Revenue will now undertake a daily refresh of the Employer CSV file to include rehired eligible employees. To be included in this refresh, employers must ensure that the rehired employees are on the Payroll and an RPN has been received one working day before the employer calculates and submits the first payroll payment for the rehired employees. Revenue is developing a notification process to inform employers (via the ROS inbox) when a refreshed Employer CSV file is available to download.
Revenue issued a press release yesterday with advice for employers who wish to operate TWSS for rehired employees (outlined below). Revenue is reprocessing all J9 submissions for rehired employees received between 2 May 2020 and 18 May 2020 and refunds will be made as appropriate (paragraph 2.8).
The updated FAQ also includes:
- Confirmation that Revenue will process all submissions (including gross pay values of €0.00), that have a J9 PRSI class as submissions for refund processing regardless of the Additional Gross Payment value. The €0.01 (in Additional Gross Pay) is required as some payroll software require a minimum of €0.01 in order to calculate the employee’s tax refund (paragraph 2.1).
- Information for employers who no longer wish to avail of the scheme or if circumstances have changed whereby the employer no longer meets the employer eligibility criteria. The employer should stop making any further J9 payroll submissions to Revenue and ensure that the PRSI class on all employees is returned to the correct PRSI class. The employer must retain records relating to the operation of the scheme including all subsidy payments made to employees (paragraph 2.13).
- Detailed information to help employers and agents understand the information provided on the Statement of Account on ROS, together with a worked example (paragraph 5.7).
Revenue advice to employers on operating TWSS for rehired employees
In a press release Revenue confirmed that, as scheduled, information relating to the calculation of the correct subsidy due for employees who were laid off due to the COVID-19 crisis and subsequently rehired by their employer from 1 May 2020, can now be downloaded via ROS. Any retrospective subsidy payments due to employers will be made automatically by Revenue.
As sectors begin to reopen and staff return to work over the coming weeks, Revenue remind employers to ensure that a Revenue Payroll Notification (RPN) has been received for any rehired employees at least one working day before running the first payroll that includes those staff members. This will ensure that the rehired employee’s information is provided to employers in advance of running the payroll and the correct wage subsidy is paid.