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

TWSS Reconciliation

Update 14 October 2020: Included clarification on which payslips are included in the TWSS Reconciliation CSV file.

The Temporary Wage Subsidy Scheme (TWSS) closed on 31 August 2020. Revenue will be conducting a reconciliation of the subsidy amounts refunded by Revenue to employers and the amounts of the subsidy that were paid to employees by employers to be completed.

The reconciliation will determine:

  • if any amount of the subsidy paid to the employer should be paid back to Revenue
  • if the company is entitled to receive additional payments from Revenue if they did not receive the full subsidy

The reconciliation will also allow Revenue to confirm the subsidy amount that was actually paid to employees so that Revenue can accurately calculate the Income Tax and USC liability for individuals that forms part of the End of Year review.

The reconciliation process consists of two phases:

Phase 1

The first phase in the reconciliation process is to submit a reconciliation report to Revenue by 31 October 2020. To do this:

  • Log into SimplePay, go to Reports and click on TWSS Reconcilation CSV – 2020. Please note that only payslips that meet the following criteria will be included in the report:
    • The payslip was submitted to ROS through SimplePay
    • The PRSI class for the employee was J9
    • The otherPayments COVID19 field was not included

Note: The OtherPayments field, introduced in mid April, enabled SimplePay to include the wage subsidy amounts in your submissions to Revenue (read more here). The TWSS Reconciliation CSV will not contain payslips submitted to Revenue after this field was introduced because these subsidy amounts have already been submitted to Revenue. The CSV provides Revenue with the wage subsidy amounts that were paid to employees that haven’t already been reported in your submissions to Revenue.

  • Then log into ROS to upload the CSV report. The steps for uploading the report is outlined in this Revenue document.

Phase 2

All active payslips submitted will be examined to determine the subsidy payable amount for each payslip based on the rules of the TWSS.

Following the completion of the stages, a Statement of Account will be sent to the employer’s ROS inbox.

If you have any questions about the Reconciliation Report, feel free to reach out to our Support team.

Team SimplePay

Introducing EWSS and TWSS Reconciliation

Amongst many other vital schemes, programmes and incentives, the Government’s July stimulus package signposted the upcoming transition from the Temporary Wage Subsidy Scheme (TWSS) to the Employment Wage Subsidy Scheme (EWSS). Naturally, as the TWSS starts to draw to a close, the reconciliation of this scheme will begin. In today’s blog we shall give you an outline of what you can expect in the near future with respect to EWSS, as well as the purpose of and likely process for TWSS reconciliation as we come to the end of TWSS.

Employee Wage Subsidy Scheme

The EWSS is due to succeed TWSS in supporting employers in paying employee’s wages and will at least run until April 2021, with the possibility of extension after this date. TWSS is currently still in operation, but is due to close on 31 August. Although EWSS has now opened and is available for the months of July and August, if you are currently participating in the TWSS scheme you should not switch to EWSS until 1 September 2020. There are some fundamental differences between the two schemes, which we have detailed below:

Update 6 August: Proprietary directors reinstated to the EWSS from 1 September – see here.

EWSS vs TWSS

TWSSEWSS
Eligibility Criteria25% reduction in turnover / Customer Orders / reasonable basis for Q2 of 202030% reduction in turnover / Customer Orders for the period of July to December 2020, compared to the same period in 2019. (More to be announced for companies not in operation before July 2019).
Proprietary directors can partake from 1 September.
Certain restrictions for connected persons.
Amount paid Under the schemeUp to €410 per employee per week, dependent on salary and employer top upsUp to €203 per employee per week, dependent on salary.
Purpose of the fundingEmployee wagesCompany subsidy
Tax on scheme amountsNot subject to PAYE, USC or PRSI for employees or employers, but taxable on assessment for employees. Reinstatement of PAYE, USC and employee PRSI payroll deductions for employees. Employers PRSI contributions reduced to 0.5%.
Unclear on the tax treatment of the payments to the employer from the EWSS. 
Scheme Operational between1 March to 31 August 20201 July 2020 to  31 March 2021

Revenue is finalising the exact ways in which the EWSS scheme will be run and processed through payroll. They have also stated that if employers wish to participate in EWSS before 1 September, this must be done separately to payroll and so SimplePay will unfortunately not be able to assist you if this is what you wish to do.

When we have a full picture of how the scheme will be implemented and put into effect, we shall inform you on how SimplePay is catering to your needs and making your payroll a doddle!

TWSS Reconciliation

Due to the nature of the situation brought about by COVID-19, the TWSS had to be implemented swiftly to ensure that companies and their employees were supported. Because it was important that employees received funds, the TWSS payments were treated as a non-taxable benefit in terms of PAYE, USC and PRSI, but would be taxable on assessment. Due to this expedited implementation, for the first two months that TWSS was running there was no way of recording the subsidy amount on an employee’s payroll submission. To address this, part way through the scheme Revenue introduced a new payment field labeled “other payment” to allow for subsidy payments to be recorded on employees’ payroll submissions.

The aim of the reconciliation is to:

  • establish the actual subsidy amounts which were paid to each employee; 
  • see if the correct amounts were paid to each employee in the months before accurate subsidy values were provided by Revenue; and
  • settle the difference for these early months between the employer’s and Revenue’s calculated values.

As the framework for this reconciliation process is being finalised, SimplePay will take all the necessary actions to make your processing of this as smooth and hassle free as possible.

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