Employment Wage Subsidy Scheme

EWSS Rates 

Following on from the Government’s announcement that the Employment Wage Subsidy Scheme (EWSS) would be extended until the end of December 2021, the below subsidy rates will continue to apply for the months of July, August and September 2021 based on employee’s gross pay per week: The subsidy rates payable for October 2021 onwards have yet to be announced by the Government.   Employers must operate normal deductions of income tax, USC and employee PRSI from employees’ pay on all EWSS payments through the payroll. A reduced rate of employer PRSI of 0.5% is payable on wages which are eligible for the subsidy payment.

EWSS Eligibility

  In order for an employer to be eligible to avail of the EWSS from the period starting 1st July 2021, employers must experience a minimum of 30% decline in turnover/customer orders cumulatively over the 12 month period from January - December 2021 in comparison to January - December 2019 as a result of Covid 19.   A monthly review must be carried out on the last day of each month to confirm it is in order to claim for the following month based on projections for the period as a whole. For example, if January – June 2021 actual turnover plus projected turnover for July – December 2021 is estimated to be more than 30% down on January – December 2019 then it is in order to continue to claim through the EWSS.   Employers should ensure copies of turnover/projected turnover figures are recorded for each month as part of records to be retained as evidence/basis for entering and remaining in the scheme for potential review by Revenue at a future date.   If at any point during the remainder of the year an employer determines they will no longer suffer a 30% or greater fall in turnover for the 2021 year when compared to 2019, the employer should cease to claim EWSS and deregister from the Scheme.

Employer Eligibility Review Form (ERF) 

  Revenue have announced details of a new requirement under the EWSS which sees employers being required to complete an online Employer Eligibility Review Form (ERF) through ROS on a monthly basis, in order to ensure eligibility for the scheme.   The initial ERF for the June period which will be used to assess eligibility for pay dates from 1st July needs to be completed and submitted online between 21st and 30th July 2021. Employers will need to provide details of actual monthly vat exclusive turnover or customer order values by month for 2019, the first six months of 2021 and monthly projections for the remainder of 2021.   On 15th of every subsequent month during the scheme operation, employers will need to provide details of the actual results for the previous month, together with reviewing the original projections provided to ensure they remain valid.   Failure to complete and submit the EWSS Eligibility Review Form each month confirming sufficient reductions in turnover/customer orders will result in suspension of payment of an employer’s EWSS claims.   Further details on the EWSS eligibility and the ERF are available at: https://www.revenue.ie/en/employing-people/documents/ewss/guidelines-on-eligibility-for-ewss.pdf