TWSS Reconciliation

As you’re likely aware, the Temporary Wage Subsidy Scheme (TWSS) was introduced last year to help mitigate the adverse effects of the pandemic on employment. Affected employers could receive income support for their employees, helping avoid layoffs over the period that trade was restricted. A requirement to partaking in TWSS was that employers would need to carry out a reconciliation process after the scheme had reached completion. The first phase of this occurred in October 2020, where employers were required to submit reconciliation reports, as covered in our previous blog post.

This Monday (22 March 2021) the reconciliation window for TWSS opened. Between now and 30 June 2021 you will need to log into ROS, check the information recorded to be correct, make amendments if necessary, and submit your reconciliation. 

If you haven’t already, you will receive a notification in your ROS inbox when your reconciliation information is available.

IMPORTANT: The deadline for completing the reconciliation is not until 30 June 2021. Before you review and accept your reconciliation balance on ROS, you need to read through Revenue’s guidance on the TWSS reconciliation to ensure that you complete it correctly. This provides a useful overview, as well as information on each key step of the reconciliation process.

In section 4 “How to review and correct subsidy paid data” we would recommend that you make any necessary amendments directly on ROS. This will immediately update your information to give you an up to date statement of account on submission.

Information about TWSS reconciliation can also be found in this Revenue Press Release, and in this Extensive Guide which covers the whole process in detail.

What Happens Next?

Whether or not you make any amendments to the amount of TWSS paid to your employees on ROS, Revenue will combine this information with any payments you have already made to issue you with a statement of account. This will show the amount that either you or Revenue owe to the other.

PRSI Corrections Post TWSS Reconciliation

The J9 PRSI class contributes to the number of insurable weeks of the last used non-J9 PRSI class. As a result, you’re unlikely to need to make any manual changes to the PRSI class.

However, where PRSI Class J9 was applied to your employees’ payslips and:

  • You opted out / reversed out of TWSS;
  • You were ineligible for TWSS;
  • One or more of your employees were ineligible for TWSS; or
  • Certain payslips were ineligible

then an adjustment may be required.

If Revenue has raised a PAYE or PRSI assessment with you for some or all of 26 March to 31 August 2020, then you should confirm with the caseworker whether you need to make any adjustments.

More information on changing PRSI classes on payslips for the TWSS period can be found here.

Useful Links

We hope that you have found the above information useful. If you have any questions on how the information above relates to SimplePay, please feel free to contact us at [email protected]

Equally, if you are not yet a client of SimplePay but would like to be, or if you’d like to know how we can take the effort out of filing and calculating payroll, get in contact with us or visit our website: www.simplepay.ie

Keep well and stay safe.

Team SimplePay

Employment Wage Subsidy Scheme

The Employment Wage Subsidy Scheme (EWSS), a COVID-19 relief measure, is effective from tomorrow (1 September 2020) is currently expected to run until 31 March 2021 (although provision has been made for a possible extension at a later stage). This scheme replaces the Temporary Wage Subsidy Scheme (TWSS) which comes to an end today (31 August 2020). 

If your business’s turnover has been impacted by COVID-19 and you require cash flow relief to pay employees, you may qualify for the new EWSS. The specific eligibility requirements for receiving the EWSS are outlined on our help page.

As a result of the changes discussed above, we have made adjustments to the system to assist you in making claims and to keep you compliant:

  • The Temporary COVID-19 Wage Subsidy Scheme system item on SimplePay can no longer be added to payslips dated after 31 August 2020. 
  • We have created a new system item called Employment Wage Subsidy Scheme which can be added to payslips dated after 31 August 2020. 

The new EWSS system item should only be added if you are a qualifying employer AND it should only be added to the payslips of qualifying employees. You need to evaluate eligibility on a monthly basis. Revenue may consider it an offence if you add it to payslips if the qualifying criteria have not been met for that period.  

Adding the new EWSS system item to an employee’s payslip will have no impact on an employee’s payslip or any of its calculations. However, it will be reported to Revenue when completing your submission for the pay period so that claims can be calculated and validated, since the subsidy amount depends on an employee’s earnings:

Employee Gross Weekly WagesSubsidy Payable
From € 151.50 to € 202.99€ 151.50
From € 203 to € 1,462€ 203

The total subsidy amount calculated for all employees as a result of these claims will then be paid out by Revenue on a monthly basis.

For more information on this scheme, head to our help page.

Team SimplePay

Updates to the Temporary Wage Subsidy Scheme

The Temporary Wage Subsidy Scheme (TWSS) was introduced to provide financial support to employees affected by the COVID-19 pandemic. This scheme came into effect on the 26 March 2020. More information on the TWSS can be found on our help site here.

Extension of the TWSS

Last week Minister Donohoe announced that the TWSS will remain in place until the end of August, extending the expected end date by two months. Discussions will be held towards the end of August to determine whether further extension of the scheme will take place after this extended period. 

Employees Returning from Maternity and Other Related Leave

On 29 May 2020, the Minister also announced that the eligibility of employees for the TWSS will be expanded to include employees returning to work following a period of maternity, paternity or other related leave. Additionally, employees that were in receipt of illness or other benefits paid by the Department of Employment Affairs & Social Protection (DEASP) may also now be eligible for the scheme.

Employers wishing to avail of the scheme for the aforementioned employees, can now apply through ROS myEnquiries. These employees will be included in a revised CSV file, which employers can use to pay their employees a subsidy amount. More information on which employees will now be eligible, as well as the steps required to apply can be found on Revenue’s website here.

We hope that this information proves useful to you. If you have any queries on how the above relates to payroll and the SimplePay system, please feel free to get in touch with our customer support team at [email protected].

Team SimplePay