Employer COVID-19 Wage Subsidy Scheme

Employer Covid-19 Updates: On 24th March 2020, the Government announced the implementation of exceptional measures, administered through the Department of Employment Affairs and Social Protection. This scheme is available to employers who keep employees on their payroll throughout the COVID-19 pandemic.

Revenue has worked closely with the Department of Employment Affairs and Social Protection to provide an option for employers to make this payment to their employees through the normal payroll process.

The subsidy scheme will refund employers up to a maximum of €410 per each qualifying employee. In April, this scheme will move to a subsidy payment based on 70% of the weekly average take-home pay for each employee up to a maximum of €410. The amounts paid to employees under the scheme are not subject to tax, USC or PRSI.

Employer Covid-19 guidance: Employers are encouraged to facilitate employees by operating the scheme. The amounts paid to employees and notified to Revenue will then be transferred into the employer’s bank account by Revenue. This reimbursement will, in general, be made within two working days upon receipt of the payroll submission. It will ensure a speedy payment process for employees and minimise the hardship for employees who are in temporary lay off. The employer will also administer refunds of income tax or USC that an employee may be entitled to because of being laid off. As well as it will be repaid (to the employer) through the scheme.

The scheme can be operated for employees who had their payroll submission made by the employer in the period from 1 February 2020 to 15 March 2020. Where employees have already been laid off, and their employer has ceased their employment, they can apply directly to the Department of Employment Affairs and Social Protection for the payment.

The employee must confirm to the employer that they have not, and will not, claim a payment from DEASP whilst the employer makes this payment through the payroll.

Who does the scheme apply to?

Employers from all sectors excluding public service, whose business activates have been adversely impacted by COVID-19.
Employers that keep their staff on payroll and have not ceased the employee(s) with Revenue.
Employees for whom a payroll submission was made by the employer in the period from 1 February 2020 to 15 March 2020
Employers who retain staff on payroll, some of the staff may be temporarily not working or some may be on reduced hours and/or reduced pay.
Employers must be able to demonstrate to the satisfaction of revenue, a minimum of 25% decline in turnover.

Making an application for the refund?

1. Log in to ROS

Log on to ROS myEnquiries and select the category Employer COVID -19 Refund Scheme.

2. The Declaration

Read the declaration and once you are satisfied you should press the ‘Submit’ button.

3. Manage EFTs

Log on to ROS and in Manage bank accounts>Manage EFT, ensure that the bank account details are correct.

Key features of the scheme

The employer will make the payroll submission to Revenue directly after each date.

Employers should contact their payroll software providers for assistance in respect of payroll to be processed under this scheme.

The employer runs the payroll as normal, entering the following details for each relevant employee:

PRSI Class set to J9
The payroll submission must include pay frequency and period number.

Important Points

An employer can choose to top up an employees wage however they will not receive a refund n any amount over €410. Income tax, USC and PRSI will not be reduce from the €410 payment.

The employer can repay any Income Tax and USC refunds that arise as a result of the application of tax credits and rate bands. And the employer will be able to apply for a refund of this amount.

The employee must confirm to the employer that they have not, and will not, claim a payment from DEASP whilst the employer makes this payment through the payroll.

Employers should not pay employees more than their normal take home pay as they will not receive a refund should they do so.

Additional Information

Based on the information provided in payroll submissions, Revenue will credit €410 per employee per week to the employer’s bank account recorded in ROS. The credit will include the reference COVID Employer Refund. (The main identifiers include Employer Number Gross Pay of €0.01, J9 PRSI class, Pay Frequency and Employee PPSN, Employment ID).

Depending on the individual bank, the refund should be with the employer within two working days.

If the employee(s) resume employment with the employer, or obtains other supports from DEASP, or secures employment elsewhere, the employer will not include the employee(s) concerned in future submissions.

For general issues relating to the Scheme, employers should contact Revenue’s National Employer Helpdesk via the myEnquiries system, providing details of the query and a direct dial contact number.

Employers should make sure to select ‘Employer’s PAYE’ and then ‘Employer’s PAYE General Enquiry’ when submitting the query through myEnquiries.

If you like our Employer Covid- 19 guidelines, check our Employer Covid-19 updates section here