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Wage Subsidy Scheme Issues
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The point is you are getting this subsidy tax free currently as a short term measure
The employer is getting the support to try to make sure you have a job at the end
Or would you rather they collapsed?
The employer should have to pay the tax on the 350/70% at a later stage when back on track, not the employee. Think of it the employee was hired at a gross salary on their contact that essentially will not be paid this year, the employee is only seeing same net why are they paying as far as they are concerned additional tax later on0 -
People really don't seem to have copped on that in cases where their employer is making a top-up, it's a choice between:
1 - Going onto the Wage Subsidy Scheme, and being a small bit worse off than they normally are; or
2 - Not going into the scheme and facing into pay cuts that will be significantly higher than the shortfall they face from the scheme; or
3 - layoffs for either themselves or their colleagues.
For employees who are just getting the subsidy, and no top-up, then it's a case of
1) take the €350-412 subsidy and continue to accrue PRSI Insurable weeks/benefits, and hopefully emerge the other side to go back to normal in your job; or
2) get laid-off and take €350 a week social welfare, but with no more PRSI Insurable Weeks building up, and possibly no job at the end of the scheme either.
If your employer is eligible to participate in the scheme, then revenues are going to be down at least 25% during this crisis.
What planet are people living on that they think that their employers are going to continue maintaining every single employee on 100% of their previous wages when their business is down that much?0 -
blackwhite wrote: »People really don't seem to have copped on that in cases where their employer is making a top-up, it's a choice between:
1 - Going onto the Wage Subsidy Scheme, and being a small bit worse off than they normally are; or
2 - Not going into the scheme and facing into pay cuts that will be significantly higher than the shortfall they face from the scheme; or
3 - layoffs for either themselves or their colleagues.
For employees who are just getting the subsidy, and no top-up, then it's a case of
1) take the €350-412 subsidy and continue to accrue PRSI Insurable weeks/benefits, and hopefully emerge the other side to go back to normal in your job; or
2) get laid-off and take €350 a week social welfare, but with no more PRSI Insurable Weeks building up, and possibly no job at the end of the scheme either.
If your employer is eligible to participate in the scheme, then revenues are going to be down at least 25% during this crisis.
What planet are people living on that they think that their employers are going to continue maintaining every single employee on 100% of their previous wages when their business is down that much?
100%
Bemused by some of the comments here, keeping me entertained anyway0 -
Part of the problem is that clearly some employers or whoever they have processing their payroll clearly don’t understand the difference between gross and net.
They don’t know the rules of the scheme and are making simple mistakes.
I know of one large payroll company who have made such stupid mistakes, thay actually haven’t got a clue about how the scheme is supposed to work. I don’t think they even read the documents.
Example of one of their errors was to tell the company that they shouldn’t be including the directors in the scheme as the revenue hadn’t clearly said that directors could be included. How do companies like this actually have a business?0 -
The point is you are getting this subsidy tax free currently as a short term measure
The employer is getting the support to try to make sure you have a job at the end
Or would you rather they collapsed?
No i dont want them to collapse.
Essentially the employee is getting a net payment which is going to be treated as a gross towards the end of the year. How has the revenue allowed this shambles of a scheme through. Surely if the subsidy is given as a gross now and taxed as such it would clear all if these issues and save the revenue a lot of time and hardship trying to solve this at the end of the year.0 -
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The point is you are getting this subsidy tax free currently as a short term measure
The employer is getting the support to try to make sure you have a job at the end
Or would you rather they collapsed?
Some employers are still looking for 100% or above Hrs while looking to pay reduced nets, this is not right either though.0 -
Thing is the Revenue have been cute enough to not call it a “net” payment
The Govt wanted cash in people pockets quick so rushed in a system and the Revenue are now playing catch-up0 -
kennethsmyth wrote: »Some employers are still looking for 100% or above Hrs while looking to pay reduced nets, this is not right either though.
Agree with this, myself included here but we are in a massive recession position, I’m just happy I’ll still have a job at the end of all this and that’s not guaranteed either
Don’t think most people realise the economy as we knew it since 2008 has ended, the reset button has been pressed0 -
Make sure everyone that you claim any tax credits available to you to reduce or negate any tax liability you incur. Health expenses / work from home allowance would be the 2 that immediately spring to mind. And for those that can afford it, now is an excellent time to start contributing to a pension even if just for the tax relief it gives. Even if you go into a cash fund because you don't like the markets at the moment, you'll still get the tax relief.0
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blackwhite wrote: »People really don't seem to have copped on that in cases where their employer is making a top-up, it's a choice between:
1 - Going onto the Wage Subsidy Scheme, and being a small bit worse off than they normally are; or
2 - Not going into the scheme and facing into pay cuts that will be significantly higher than the shortfall they face from the scheme; or
3 - layoffs for either themselves or their colleagues.
For employees who are just getting the subsidy, and no top-up, then it's a case of
1) take the €350-412 subsidy and continue to accrue PRSI Insurable weeks/benefits, and hopefully emerge the other side to go back to normal in your job; or
2) get laid-off and take €350 a week social welfare, but with no more PRSI Insurable Weeks building up, and possibly no job at the end of the scheme either.
If your employer is eligible to participate in the scheme, then revenues are going to be down at least 25% during this crisis.
What planet are people living on that they think that their employers are going to continue maintaining every single employee on 100% of their previous wages when their business is down that much?
It's not a choice between them.
We have 20% cuts AND availing of the scheme And are on full hours so the "small bit worse off" adds up.
Also a lot of revenue and payments have been "delayed" so showing -25% revenue is quite easy and I believe the -25% drop is not the only form of qualifying for the scheme.0 -
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100%
Bemused by some of the comments here, keeping me entertained anyway
Bemused more like confused you mean. The scheme is designed to keep people on full wage and off the live register simple as it is not a grand for business to keep employees on full time hours and have the tax payer pay their bill that is abuse. If a business has enough work for staff to work full time then it has the money to pay them. There is absolutely no excuse what so ever for an employee to be working full time and only getting the subsidy this is illegal simple as. And no worker who is working full time hours should accept being put on the scheme because you will be liable for a big tax bill in the new year that you do not owe all because your employer took the cheap option. If your company has everyone on two or three days and you get paid the subsidy then this is a poor way of using the scheme by your employer but you should still work the partime work and stay in the job.
Another thing is a huge amount of these companies that are claiming the subsidy are going to go to the wall anyway that’s a fact. We haven’t even seen the tip of the ice berg in relation to companies businesses and some traders that will close and never reopen and if your employer is already abusing this scheme ie. using it as a way to solely pay wages then the likelihood is they are going to be gone anyway so don’t get rode before that happens if you suspect something isn’t right then speak up. Don’t be listening to some on here who are obviously petty business people who are themselves using the scheme trying to make you feel bad for looking out for yourself when you feel you are clearly being abused by saying would you rather the business collapse and you are unemployed that’s bull if a business can’t stand up it must fall and if your working full time and your employer puts you on the subsidy then to be fair get out and get a job where your respected and valued your dignity is worth more. And yes there’s a recession and big change coming but with that will be opportunities and lots of them the recession will be different to any seen before. If your working hard for a company and making them money and all they tell you your worth to them is the subsidy then they are abusing the scheme abusing you flip them the bird, report them and move on.0 -
It's not a choice between them.
We have 20% cuts AND availing of the scheme And are on full hours so the "small bit worse off" adds up.
Also a lot of revenue and payments have been "delayed" so showing -25% revenue is quite easy and I believe the -25% drop is not the only form of qualifying for the scheme.
The 25% drop in either Revenue or sales orders is the core requirement. If the company cannot satisfy that, then in the event of a revenue compliance chance then revenue with reclaim (from the company) all subsidies claimed by the company0 -
Bemused more like confused you mean. The scheme is designed to keep people on full wage and off the live register simple as it is not a grand for business to keep employees on full time hours and have the tax payer pay their bill that is abuse. If a business has enough work for staff to work full time then it has the money to pay them. There is absolutely no excuse what so ever for an employee to be working full time and only getting the subsidy this is illegal simple as. And no worker who is working full time hours should accept being put on the scheme because you will be liable for a big tax bill in the new year that you do not owe all because your employer took the cheap option. If your company has everyone on two or three days and you get paid the subsidy then this is a poor way of using the scheme by your employer but you should still work the partime work and stay in the job.
Another thing is a huge amount of these companies that are claiming the subsidy are going to go to the wall anyway that’s a fact. We haven’t even seen the tip of the ice berg in relation to companies businesses and some traders that will close and never reopen and if your employer is already abusing this scheme ie. using it as a way to solely pay wages then the likelihood is they are going to be gone anyway so don’t get rode before that happens if you suspect something isn’t right then speak up. Don’t be listening to some on here who are obviously petty business people who are themselves using the scheme trying to make you feel bad for looking out for yourself when you feel you are clearly being abused by saying would you rather the business collapse and you are unemployed that’s bull if a business can’t stand up it must fall and if your working full time and your employer puts you on the subsidy then to be fair get out and get a job where your respected and valued your dignity is worth more. And yes there’s a recession and big change coming but with that will be opportunities and lots of them the recession will be different to any seen before. If your working hard for a company and making them money and all they tell you your worth to them is the subsidy then they are abusing the scheme abusing you flip them the bird, report them and move on.
A few companies who are going to try to feck over the system will be lined up outside the labour court for trying to rob the state.
Not sure if it's true but someone told me already a few companies tried it and will be in deep sh1t.
You know the types 30 and 40 something's who were given jobs due to their rubbing shoulders with certain people in society.
CEOs who's daddy's related to so and so and never worked an honest day in their lives.
Unions are going to be very strong after this, if I was anyone who's not in a union I'd get together with your work colleagues and start working collectively.
You'll see a lot of new talent running companies after this and a lot of people will be losing confidence in their CEOs and narcissistic managers.
So collectively they'll be getting together and naming and shaming those guys who are trying to shaft their employees and pushing the reset button to bring in people on minimum wages and giving themselves bonuses and incentives because they're worth it.
Every CEO who tries to rob the state or exploit their staff should be named and shamed.
Anyhow this is a great time to reduce managers wages and start getting more staff on the floor, there's far too many idiot's out there who think they are pulling the woll over people's eyes, fiddling grants and budget's to suit their own needs.
I spend as much as my budget as possible and get my staff what we need, then the next year it's increased.
The plebs on the other site try to scrimp and save,you know the brown nose types, then they're borrowing machinery and PPE off us because they're I'll equipped.
All because they get a pat on the back for being a good boy.
The last time I gave the fckrs a chainsaw it came back in two parts, another time I gave them a safety ladder which you could drop off a 5 story building and it would hardly dent and it's wrecked...
This time now they can feck off, we all are entitled to the same budget but they're licking ass and trying to be good biys...
I like to speculate my accumulates... we're all right Jack and you can go your own way as Fleetwood Mac sang..0 -
I have a few questions in relation to the updated terms of the wage subsidy. https://www.revenue.ie/en/corporate/communications/covid19/temporary-covid-19-wage-subsidy-scheme.aspx Or perhaps slightly more readable here: https://www.bdo.ie/en-gb/news/2020/temporary-covid-19-wage-subsidy-scheme
I'm going to use an example similar to my own but with rounder figures: I was on a salary of 80,000 which was cut by 30% at the start of april before these new measures were announced. The company I work for are part of the Covid 19 wage subsidy scheme.
As part of the updated version of the wage subsidy scheme, the subsidy is based of the average net weekly pay for January and February (i.e. the 80000) and the gross amount paid by the employer, in this case between 60% to 80% of the previous average weekly net pay, which yields a subsidy of 205 per week (tapered so net weekly earnings don't go over 960)
My question is: Do I personally get the subsidy via payroll or does it just go to the company, e.g. they receive it but don't pass it on? My point is, can they use this subsidy to subsidise my 'new' reduced salary (56000) or do they pay me the reduced salary (56000) plus the subsidy? I'm finding it hard from the links above to figure out what is what and I don't trust the company at this present moment.
I'm also aware that this comes in from 4th May with the exception if your salary was over 76000 before and is now less, which applies to me. In this case it came into effect from April 16 (I'm not sure why this is the case being honest)0 -
I have a few questions in relation to the updated terms of the wage subsidy. https://www.revenue.ie/en/corporate/communications/covid19/temporary-covid-19-wage-subsidy-scheme.aspx Or perhaps slightly more readable here: https://www.bdo.ie/en-gb/news/2020/temporary-covid-19-wage-subsidy-scheme
I'm going to use an example similar to my own but with rounder figures: I was on a salary of 80,000 which was cut by 30% at the start of april before these new measures were announced. The company I work for are part of the Covid 19 wage subsidy scheme.
As part of the updated version of the wage subsidy scheme, the subsidy is based of the average net weekly pay for January and February (i.e. the 80000) and the gross amount paid by the employer, in this case between 60% to 80% of the previous average weekly net pay, which yields a subsidy of 205 per week (tapered so net weekly earnings don't go over 960)
My question is: Do I personally get the subsidy via payroll or does it just go to the company, e.g. they receive it but don't pass it on? My point is, can they use this subsidy to subsidise my 'new' reduced salary (56000) or do they pay me the reduced salary (56000) plus the subsidy? I'm finding it hard from the links above to figure out what is what and I don't trust the company at this present moment.
I'm also aware that this comes in from 4th May with the exception if your salary was over 76000 before and is now less, which applies to me. In this case it came into effect from April 16 (I'm not sure why this is the case being honest)
You get eligible subsidy via the payroll, it will be specified as a separate pay element as it is tax free for now
Company pays you, they claim it back as part of the payroll submission0 -
Bemused more like confused you mean. The scheme is designed to keep people on full wage and off the live register simple as it is not a grand for business to keep employees on full time hours and have the tax payer pay their bill that is abuse. If a business has enough work for staff to work full time then it has the money to pay them. There is absolutely no excuse what so ever for an employee to be working full time and only getting the subsidy this is illegal simple as. And no worker who is working full time hours should accept being put on the scheme because you will be liable for a big tax bill in the new year that you do not owe all because your employer took the cheap option. If your company has everyone on two or three days and you get paid the subsidy then this is a poor way of using the scheme by your employer but you should still work the partime work and stay in the job.
Another thing is a huge amount of these companies that are claiming the subsidy are going to go to the wall anyway that’s a fact. We haven’t even seen the tip of the ice berg in relation to companies businesses and some traders that will close and never reopen and if your employer is already abusing this scheme ie. using it as a way to solely pay wages then the likelihood is they are going to be gone anyway so don’t get rode before that happens if you suspect something isn’t right then speak up. Don’t be listening to some on here who are obviously petty business people who are themselves using the scheme trying to make you feel bad for looking out for yourself when you feel you are clearly being abused by saying would you rather the business collapse and you are unemployed that’s bull if a business can’t stand up it must fall and if your working full time and your employer puts you on the subsidy then to be fair get out and get a job where your respected and valued your dignity is worth more. And yes there’s a recession and big change coming but with that will be opportunities and lots of them the recession will be different to any seen before. If your working hard for a company and making them money and all they tell you your worth to them is the subsidy then they are abusing the scheme abusing you flip them the bird, report them and move on.
I have trawled through the press releases and revenue website and can see nothing that backs up your view that companies will be penalized. All they need to do is prove that turnover is down 25% to the satisfaction of the revenue. I think every company can proove that with ease.
Its left vague but revenue cannot make this clearcut in November and then retrospectively start penalising companies.
Are you sourcing information from somewhere that i have not come across?
Its a stupid scheme that without any clear guidelines. Very hard to accuse any company of fiddling it.
The subsidy should be given as a taxable gross or do not try to reclaim tax from the employee at a later date.
A very naive effort from the revenue with absolutely no thought to it at all. Who in their right mind agrees a take home pay with their employees when everyone has a different tax credit. It actually makes a mockery of the tax credit system. And here we have the government agreeing a take home figure for working employees.0 -
You get eligible subsidy via the payroll, it will be specified as a separate pay element as it is tax free for now
Company pays you, they claim it back as part of the payroll submission
So just to confirm, they should pay the 'new' reduced salary (56000) as normal, e.g. eligible for income tax, etc and then the subsidy is added on extra, tax free, of an amount of 205 per week or less depending on tapering conditions?
This is at odds with my companies previous communications, albeit it was a few weeks ago before the newly announced updates to the wage subsidy scheme and as such, could be out of date:
"am I entitled to any part of the new Government COVID-19 Wage Subsidy Scheme?
The Irish Government is proposing to pay up to 70% of employees weekly take-home pay for 12 weeks during the COVID-19 Pandemic - up to a maximum of €410 per week for a certain number of employees. However, this is not a payment that individual employees will be accessing – it has been created for companies to help them continue employment of staff during this difficult period. There are no other payments currently on offer from the Irish Government for employees who have reduced salaries."0 -
I have a few questions in relation to the updated terms of the wage subsidy. https://www.revenue.ie/en/corporate/communications/covid19/temporary-covid-19-wage-subsidy-scheme.aspx Or perhaps slightly more readable here: https://www.bdo.ie/en-gb/news/2020/temporary-covid-19-wage-subsidy-scheme
I'm going to use an example similar to my own but with rounder figures: I was on a salary of 80,000 which was cut by 30% at the start of april before these new measures were announced. The company I work for are part of the Covid 19 wage subsidy scheme.
As part of the updated version of the wage subsidy scheme, the subsidy is based of the average net weekly pay for January and February (i.e. the 80000) and the gross amount paid by the employer, in this case between 60% to 80% of the previous average weekly net pay, which yields a subsidy of 205 per week (tapered so net weekly earnings don't go over 960)
My question is: Do I personally get the subsidy via payroll or does it just go to the company, e.g. they receive it but don't pass it on? My point is, can they use this subsidy to subsidise my 'new' reduced salary (56000) or do they pay me the reduced salary (56000) plus the subsidy? I'm finding it hard from the links above to figure out what is what and I don't trust the company at this present moment.
I'm also aware that this comes in from 4th May with the exception if your salary was over 76000 before and is now less, which applies to me. In this case it came into effect from April 16 (I'm not sure why this is the case being honest)
If we break you salary done into a weekly pay you would be on a gross of €1,666 per week.
Now this figure is useless in calculating your subsidy as the revenue base it in your averge take home (net) per week in January and February.
Lets assume you take home an average of €1,000 per week. Straight away you earn over €960 per week so you do not qualify for the scheme under your average for jan/feb. however your employer can manually put in the figures which will be based on you new take home pay( after your pay cut).
Lets assume your new take is €800 per week.
Revenue will subsides you €350 tax free( for now but will tax you on this later in year). This leaves you with a shortfall of €450. It is up to your employer if they want to give you this €450. If they do it goes in as a taxable pay to which you will pay apprx €20 tax on. You now take home €780 with a tax liability at the end on the year of approx €1,600. Revenue will adjust you tax credit for about 2 years to allow you to pay this back.
Your employer cannot top you up by more than €450 per week or if they do go over that amount the revenue will reduce the subsidy by the same amount.
The subsidised money is refunded to your employer in a couple of days.0 -
Spoke to someone yesterday who contacted Revenue and got it all sorted out very quickly with subsidy due inside 2 business days. Another SME I know have also been processed although no funds have been received yet.Skihunta13 wrote: »I have trawled through the press releases and revenue website and can see nothing that backs up your view that companies will be penalized. All they need to do is prove that turnover is down 25% to the satisfaction of the revenue. I think every company can proove that with ease.
Its left vague but revenue cannot make this clearcut in November and then retrospectively start penalising companies.
Are you sourcing information from somewhere that i have not come across?
Its a stupid scheme that without any clear guidelines. Very hard to accuse any company of fiddling it.
The subsidy should be given as a taxable gross or do not try to reclaim tax from the employee at a later date.
A very naive effort from the revenue with absolutely no thought to it at all. Who in their right mind agrees a take home pay with their employees when everyone has a different tax credit. It actually makes a mockery of the tax credit system. And here we have the government agreeing a take home figure for working employees.0 -
So just to confirm, they should pay the 'new' reduced salary (56000) as normal, e.g. eligible for income tax, etc and then the subsidy is added on extra, tax free, of an amount of 205 per week or less depending on tapering conditions?
This is at odds with my companies previous communications, albeit it was a few weeks ago before the newly announced updates to the wage subsidy scheme and as such, could be out of date:
"am I entitled to any part of the new Government COVID-19 Wage Subsidy Scheme?
The Irish Government is proposing to pay up to 70% of employees weekly take-home pay for 12 weeks during the COVID-19 Pandemic - up to a maximum of €410 per week for a certain number of employees. However, this is not a payment that individual employees will be accessing – it has been created for companies to help them continue employment of staff during this difficult period. There are no other payments currently on offer from the Irish Government for employees who have reduced salaries."
No, the subsidy is not extra, it is part of the agreed figure that they will pay you, it may be all that you get or they will top it up0 -
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is_that_so wrote: »Spoke to someone yesterday who contacted Revenue and got it all sorted out very quickly with subsidy due inside 2 business days. Another SME I know have also been processed although no funds have been received yet.
Revenue are making absolutely no effort to screen applicants and are basically paying the employer back 70% of there wage bill even if the subsidy has maxed out at less than 70% of the emploees wage.0 -
Skihunta13 wrote: »Revenue are making absolutely no effort to screen applicants and are basically paying the employer back 70% of there wage bill even if the subsidy has maxed out at less than 70% of the emploees wage.
Correct, they did state in their initial guidelines that it is up to the employer to claim the correct amount through the payroll and they would be overpaying until they had time to reconcile, employer must hold the over payment as it will be reclaimed later in the year0 -
Skihunta13 wrote: »If we break you salary done into a weekly pay you would be on a gross of €1,666 per week.
Now this figure is useless in calculating your subsidy as the revenue base it in your averge take home (net) per week in January and February.
Lets assume you take home an average of €1,000 per week. Straight away you earn over €960 per week so you do not qualify for the scheme under your average for jan/feb. however your employer can manually put in the figures which will be based on you new take home pay( after your pay cut).
Lets assume your new take is €800 per week.
Revenue will subsides you €350 tax free( for now but will tax you on this later in year). This leaves you with a shortfall of €450. It is up to your employer if they want to give you this €450. If they do it goes in as a taxable pay to which you will pay apprx €20 tax on. You now take home €780 with a tax liability at the end on the year of approx €1,600. Revenue will adjust you tax credit for about 2 years to allow you to pay this back.
Your employer cannot top you up by more than €450 per week or if they do go over that amount the revenue will reduce the subsidy by the same amount.
The subsidised money is refunded to your employer in a couple of days.
In relation to bold quote: I don't interpret this as correct. Quoted from revenue.
"From 16 April 2020, the wage subsidy is available to support employees where their pre-Covid salary was greater than €76,000, and their post-Covid salary has fallen below €76,000, subject to the tiered arrangements and tapering to ensure that the net pay does not exceed €960 per week.
In these cases where the employee’s earnings have now been reduced by
more than 20%, a subsidy of up to €205 would be payable
more than 60%, a subsidy of up to €350 would be payable."0 -
No, the subsidy is not extra, it is part of the agreed figure that they will pay you, it may be all that you get or they will top it up
ok, just to be clear, they can claim the subsidy based off the 80,000 salary (based of Jan and Feb this year) and apply the 205 per week (ignoring any tapering effects for now) to the 'new' 56000. Normally that salary would have net weekly pay of approx 770 (from deloitte tax calculator). This this mean the government pays 205 and the company pays 565 net?
I thought the point of the wage subsidy scheme was to help offset wage cuts?0 -
I looked through a family member's slip.
The gross 350 and the top up was appearing in the gross box (let's say 200) and in the next column the tax due on all of it.
However, this was clearly the tax due of 80 is clearly being based on the 550+the tax (i.e. they weren't taxing the 550 (550-80) bit a notional 630 (so 630-80 =550).
This -80 was then added back onto the the 550 (rather than subtracted) to bump the take-home pay to 630.
However, tax credit for the week (which aren't being utilised at this time) exceed this 80 so tax liability at end year shouldn't be an issue.0 -
WFH - fulltime, salary, no overtime payments (40+ hour p.w)
Pension : max contribution
Salary deducted 20% at start of Lockdown
Company then decides after deducting salary to go the C-19 benefit scheme : top-up by company brings salary to 80%, as per start of Lockdown, (includes the 20% deduction)
Query
Irish Government contribution 70% + Company contribution 10% = 80% of salary
What implications has this to my pension payments?0 -
I looked through a family member's slip.
The gross 350 and the top up was appearing in the gross box (let's say 200) and in the next column the tax due on all of it.
However, this was clearly the tax due of 80 is clearly being based on the 550+the tax (i.e. they weren't taxing the 550 (550-80) bit a notional 630 (so 630-80 =550).
This -80 was then added back onto the the 550 (rather than subtracted) to bump the take-home pay to 630.
However, tax credit for the week (which aren't being utilised at this time) exceed this 80 so tax liability at end year shouldn't be an issue. .
The 350 subsidy has to go in as a non taxable pay.
However at end of year the revenue “may” reclaim the tax due on the 350. If you are receiving a top up the 350 will be taxed as an earning after your top up. In a lot of cases this will push the 350 into the higher tax bracket (40%).
Hopefully at the end of the yer Covid-19 will be distant memory. Will employees have the same attitude then that they were glad to have job? Doubt it very much. They will ring the revenue and ask what this tax bill about. They be told very quickly that they earned an income of 350 per week that was not taxed and we told you we would come look for this tax back. If you are not happy ask your employer to re-imburse you. For the employer to re-imburse €1,600 will cost them approx €3,000 of which 40% goes straight back to the revenue.
So at the end of the day the gov is not giving a subsidy to anyone but creating a huge spin that is going to cost the employer a fortune.0 -
ok, just to be clear, they can claim the subsidy based off the 80,000 salary (based of Jan and Feb this year) and apply the 205 per week (ignoring any tapering effects for now) to the 'new' 56000. Normally that salary would have net weekly pay of approx 770 (from deloitte tax calculator). This this mean the government pays 205 and the company pays 565 net?
I thought the point of the wage subsidy scheme was to help offset wage cuts?
The point of the wage subsidy was to stop the employer laying people off0 -
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The gross 350 and the top up was appearing in the gross box (let's say 200) and in the next column the tax due on all of it
This was how the couple versions of Revenue's FAQ showed how apply the Subsidy, in section 4.4. However this was incorrect, the Subsidy should not have been included in Gross Pay. Revenue subsequently removed it from from their example.When is the money (including lost growth) Michael Noonan took in the Pension Levy going to be paid back?
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