News & Events
What the wage subsidy scheme entails and how to know when to cease it.
Businesses and individuals alike are finding their feet again after a tumultuous and uncertain two years, there is no doubt we are finally seeing the light at the end of the tunnel however there are still hurdles to overcome.
One big change that is being navigated is that many employers are now considering coming off the Employee Wage Subsidy Scheme (EWSS) and trying to stand on their own two feet again.
What is the Wage Subsidy Scheme?
Under the July Jobs Stimulus Package, the Employment Wage Subsidy Scheme (EWSS) replaced the Temporary Wage Subsidy Scheme (TWSS) from 1 September 2020 and will run until 30 April 2022.
Under the EWSS scheme, employers and new firms in sectors impacted by COVID-19 whose turnover has fallen 30% get a flat-rate subsidy per week based on the number of qualifying employees on the payroll, including seasonal staff and new employees.
Each employer must complete a monthly review to check their eligibility, they need to undertake this review on the last day of every month to ensure they continue to meet the criteria of the scheme.
How do you know if you are still eligible?
An employer will no longer be eligible if they don’t meet the 30% reduction in turnover and if that is the case, they must cease their scheme. Many companies are now finding that their turnover is actually better than they may have previously predicted and therefore are now taking the steps to exit from the scheme.
If you are not sure whether you are eligible, you can get in touch with our office, and we would be happy to help you.
If you are no longer eligible for the scheme, Revenue recommends ceasing the registration for the EWSS scheme on the 1st of the following month after completion of the month-end review.
How to exit the scheme
In order to exit the scheme, you will need to go to the ‘manage tax registration section’ on ROS and the option to deregister is under the EWSS section. Alternatively, you can ask your accountant to do this for you. You will have the option to re-join in the new year should your circumstances change again.
If you have any queries, please do not hesitate to contact our office.