This update has helped to clarify some recurring queries.
A summary of the main clarifications arising from the update are:
Eligible employers can participate in the scheme in respect of any eligible employees on their payroll, including those on fulltime, reduced hours, rehired staff who were temporarily laid off, or staff temporarily laid off but retained on the payroll.
Net pay and the impact of tax refunds:
An employee is not an eligible employee if:
- Their Average Net Weekly Wage exceeds €960, or
- The sum of payments (subsidy plus any additional payment but excluding tax refunds) payable to the employee in the week being processed exceeds the Average Net Weekly Wage.
Where an employee is due a refund of Income Tax or USC based on the payroll being processed, this should be paid by the employer and Revenue will refund this to the employer along with the associated wage subsidy.
This refund of Income tax is made to the employee, in addition to the subsidy payment and any additional payment, and should not be included in the employer’s calculation of the allowable additional payment.
If you have any queries please contact one of the Keogh Ryan Tierney Team
Link to Revenue FAQs version 4: