COVID-19 FAQs

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QUESTIONS ANSWERED IN THIS SECTION:

  • I am putting my employees on temporary layoff/short time. What are they entitled to?
  • What changes have been introduced to the Pandemic Unemployment Payment?
  • What am I entitled to as a self-employed person if my business closes due to covid-19?
  • I wish to avail of the subsidised wage scheme in order to remain open. What do I need to do?
  • An employee was in receipt of the Pandemic Unemployment Payment but they have stopped receiving this. What can they do?
  • My employee was on long term unpaid leave during the period from the 1st of February to the 29th and is due to return to work. Are they eligible for the wage subsidy scheme?
  • I have heard that there are changes being made to the temporary wage subsidy scheme. What changes are being made?
  • What rate of subsidy will I receive if I avail of the new employment wage subsidy scheme?
  • How do I register for the employment wage subsidy scheme?
  • What conditions are attached to the use of this scheme?
  • What employees are eligible for the new scheme?

 

I am putting my employees on temporary layoff/short time. What are they entitled to?

Employees who are laid off temporarily, without pay, due to a reduction in business activity, can apply for a COVID-19 Pandemic Unemployment Payment. This new payment quickly delivers income support to the unemployed (be they self-employed or employees) for a 12-week period.

If you are put on a shorter working week or have had your hours cut due to the COVID-19 pandemic, you can apply for a Short Time Work Support.

Alternatively, you can apply for Jobseeker’s Payments which can be made online at www.mywelfare.ie

What changes have been introduced to the Pandemic Unemployment Payment?

From 17 September 2020, the following changes will apply:

  • The payment will remain open to new applicants after this date.
  • A new rate of €250 will be introduced for people who previously earned between €200 and €300 per week
  • The maximum rate of payment will be reduced from €350 to €300 for people who previously earned over €300 per week

The rate of payment will be reduced again in February 2021 to bring it gradually in line with the standard jobseeker payment of €203.

From 1 February 2021, the following changes will apply:

  • The rate of payment will be reduced from €250 to €203 for people who previously earned between €200 and €300 per week
  • The rate of payment will be reduced from €300 to €250 for people who previously earned over €300 per week

The COVID-19 Pandemic Unemployment Payment will end on 1 April 2021. People getting the payment will have to apply for a jobseeker’s payment if they have not found work by that date

What am I entitled to as a self-employed person if my business closes due to Covid-19?

Those who are self-employed and face a loss of income due to Covid-19 are entitled to the same supports as employees, outlined above.

I wish to avail of the subsidised wage scheme in order to remain open. What do I need to do?

The Department’s Employers Refund Scheme announced on the 15th March is no longer accepting applications and has been replaced by a new and enhanced COVID-19 Wage Subsidy Scheme . This scheme will be administered by the Revenue Commissioners.

Employers who have already signed up for the Employer Refund Scheme announced on 15th March, and who may have received refunds under the current scheme do not need to reapply.

The Revenue Commissioners will contact them directly to confirm that they meet the conditions for this new scheme.

The Temporary Wage Subsidy Scheme is now closed to new Applications. Employers seeking wage support should now review the Employment Wage subsidy Scheme.

An employee was in receipt of the Pandemic Unemployment Payment but they have stopped receiving this. What can they do?

Your employee should contact the department of social welfare directly in order to discuss why the payment has stopped if it has been stopped in error.

My employee was on long term unpaid leave during the period from the 1st of February to the 29th and is due to return to work. Are they eligible for the wage subsidy scheme?

An eligible employer can request Revenue to treat an employee as an eligible employee for the purposes of this scheme where that employee returns (or is due to return in the coming weeks) to employment following Maternity, Adoptive, Paternity or Parental leave, or directly related unpaid leave, or was in receipt of Health and Safety benefit, Parent’s benefit, or Illness benefit paid by DEASP for the month of February 2020.

I have heard that there are changes being made to the temporary wage subsidy scheme. What changes are being made?

It has been announced that the temporary wage subsidy scheme will be changed to the Employment Wage Subsidy Scheme (EWSS), based on business eligibility delivering a per-head subsidy on a flat rate basis. More information on this scheme can be found here.

The EWSS will replace the Temporary Wage Subsidy Scheme (TWSS) from the 1st of September. Both the TWSS and EWSS will run in parallel from July 31st until the TWSS concludes at the end of August to provide additional flexibility to employers with new hires and seasonal workers who were not previously eligible to be paid via TWSS and who may now qualify for EWSS. Those on the TWSS will remain on this scheme until the 1st of September.

The primary criteria for qualification for the EWSS is that the employer must demonstrate that they are operating at no more than 70% turnover from the period July to December 2020 compared to the same period last year.

The EWSS will run to the end of March 2021 and will be paid at a flat rate of up to €203 per week per employee.

What rate of subsidy will I receive if I avail of the new Employment Wage Subsidy Scheme?

The new scheme is paid at a flat rate that is worked out on the employee’s gross weekly pay.

The rate of weekly subsidy the employer will receive per paid eligible employee is as follows:

Employee Gross Weekly Wage Subsidy Payable
Less than €151.50 €0
From €151.50 to €202.99 €203
From €203 to €299.99 €250
From €300 to €399.99 €300
From €400 t0 €1,462 €350
More than €1,462 €0

How do I register for the Employment Wage Subsidy Scheme?

Eligible employers, or their payroll or financial agents, will be able to register for EWSS through ROS from 18th August. The date of registration cannot be back dated prior to the date of application and does not need to be back dated if a claim will be submitted in respect of payments in July/August. As part of the registration an employer will be required to complete a declaration confirming they are eligible for the scheme.

What conditions are attached to the use of this scheme?

Employers are required to undertake a review on the last day of every month (other than July 2020 and the final month of the scheme) to ensure they continue to meet the eligibility criteria.

Eligibility criteria include:

  • Employers must possess a valid tax clearance certificate to enter the EWSS and continue to maintain tax clearance for the duration of the scheme, in order to receive the applicable EWSS payments provided all other conditions are met.
  • their business is expected to experience a 30% reduction in turnover or orders between 1 July and 31 December 2020 for 2020 paydates and between 1 January to 30 June 2021 for 2021 paydates, looking at the period as a whole rather than on a monthly basis; and
  • This disruption is caused by COVID-19.
  • For 2020 paydates, this reduction in turnover or orders is relative to
    • the same period in 2019 where the business was in existence prior to 1 July 2019;
    • where the business commenced trading between 1 July and 1 November 2019, the date of commencement to 31 December 2019; or
    • where a business commenced after 1 November 2019, the projected turnover or orders for 1 July 2020 to 31 December 2020. For 2021 paydates, this reduction in turnover or orders is relative to
    • the same period in 2019 where the business was in existence prior to 1 January 2019;
    • where the business commenced trading between 1 January and 1 May 2019, the date of commencement to 30 June 2019; or
    • where a business commenced after 1 May 2019, the projected turnover or orders for 1 January 2021 to 30 June 2021.

If employers no longer qualify, they must deregister for EWSS through ROS with effect from the following day (1st of the month) and cease claiming the subsidy. If an employer becomes aware prior to the end of the month that they will no longer meet the eligibility criteria (e.g. unexpected donation or grant received at the start of a month), they should deregister immediately and cease to claim subsidies.

Subsidies correctly claimed in accordance with the terms and conditions of the scheme prior to deregistration will not be repayable. If circumstances change the following month and the employer is again eligible, they can reregister and claim from the date of reregistration. It is not possible to backdate the claim to include the period of deregistration as that correctly reflected the employer’s expectation at that time.

What employees are eligible for the new scheme?

There are no restrictions on taking on new employees or movement of employees under the Transfer of Undertakings (Protection of Employment) (TUPE) legislation, provided such recruitments/movements are undertaken for bona fide business purposes and not with the intention to maximise subsidy claims.

Certain categories of employees are specifically excluded in legislation, those being:

  • Proprietary Directors. However, in recognition of key role played by certain proprietary directors in providing employment to others, especially in the SME sector, it has been agreed that EWSS can be claimed in respect of certain proprietary directors, subject to the following conditions:
    • the employer meets the eligibility criteria for the EWSS
    • the proprietary director is on the payroll of the eligible employer
    • the proprietary director has been paid wages which were reported to Revenue on the payroll of the eligible employer at any stage between 1 July 2019 and 30 June 2020.

Where a person is a proprietary director of two or more eligible companies, a claim for EWSS can only be submitted in respect of a single company. In this situation the following will apply:

  • the proprietary director will be required to elect one company for the purposes of making EWSS claims for the period of the scheme. The election will be deemed to be made on the first submission of an EWSS claim in respect of the proprietary director
  • once an election is made it cannot be changed during the term of the scheme,
  • no claims for EWSS in respect of the same proprietary director should be submitted by the other companies.

Further guidance on the EWSS is available here.