Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Wage Subsidy Scheme Issues

Options
13567…62

Comments

  • Options
    #62
    ilovespudss
    Registered Users Posts: 199 ✭✭ilovespudss


    highgiant1985 wrote: »
    Allowing any Tax & USC refund through is fine and won't impact on the subsidy.

    ERs will be refunded the subsidy + any tax/usc refund provided that the subsidy+top up amount hasn't exceeded Employees Revenues average net.

    NB the Revenue average net pay is NOT net pay as you'd see on your payslip its your Gross Pay from all Jan/Feb payment submission less any statutory deductions / number of PRSI Weeks (capped at 9).

    The collsoft website (they posted earlier in this thread) is really good in how they've a calculator on the front page that shows the subsidy amount and max top up possible:https://www.collsoft.ie/

    Thanks for that


  • Options
    #63
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    highgiant1985 wrote: »

    The collsoft website (they posted earlier in this thread) is really good in how they've a calculator on the front page that shows the subsidy amount and max top up possible:https://www.collsoft.ie/

    I just watched the Collsoft webinar from 03/04 and found it excellent.


  • Options
    #64
    tina1040
    Registered Users Posts: 478 ✭✭tina1040


    How is the 70% calculated when there is a pension deduction?


  • Options
    #65
    Pistachio19
    Registered Users Posts: 475 ✭✭Pistachio19


    tina1040 wrote: »
    How is the 70% calculated when there is a pension deduction?

    From my understanding, your employees net figure will be gross less PAYE/PRSI/USC. You don't deduct the pension amount.

    So for example, if your employees usual gross monthly salary is €3000
    PAYE is €400
    USC is €100
    PRSI is €100
    Employees pension contribution is €200

    Ordinarily his net pay would be €2200

    However to calculate the 70% net pay, as per Revenue instruction, you will base it on €2400 (pension figure is not deducted from gross).

    That's my understanding - we had figures done up based on the actual net salary our employee received to his bank account. However when we went to input the subsidy/top up figures into our payroll today their calculation was different. After contacting our accountant he confirmed the discrepancy was with the pension.

    I hope this makes sense. Our employee will now have quite a substantial PAYE refund so will be getting more into his account than usual. I'm not sure how this balances out over the year.


  • Options
    #66
    ffocused
    Registered Users Posts: 1,209 ✭✭✭ffocused


    Is anyone else on the WSS and still expected to work full time?

    The company I work for put my colleague (who works in the same position as me) on it last Tuesday and he is not expected to work.
    I was put on it on Friday and am still expected to work full time with no change in my hours whatsoever except that I am working from home.
    The company is still open as parts of the business are classed as essential services.

    I have also been moved from monthly pay to weekly pay.


  • Advertisement
  • Options
    #67
    Just Saying
    Registered Users Posts: 305 ✭✭Just Saying


    Sono Topolino wrote: »
    I work in tax so my sister asked me to help her apply for the Wage Subsidy Scheme for her business. While reading through the terms and conditions, I smelled a rat and asked advice from a solicitor who told me in no uncertain terms that my sister was opening herself up to legal jeopardy.

    Solicitor friend said that by self-declaring that her LTD was experiencing an "inability to claim emoluments", she was admitting to trading while insolvent, and becomes personally liable for the company's debts (basically gives up LTD status). Now the Government has said that this is not the case, and Niall Cody was on Morning Ireland yesterday also saying the same thing. So there's that.

    But still I have serious concerns: if you apply for this scheme in good faith, and in 6 months time you find that your business is in fact unable to continue trading, you go into receivership, can your creditors come after your debts? Can they seek a court declaration to this effect? It's a concern. The business will have been published on the Revenue list so this will be publicly available information. Wouldn't a judge be the one interpreting the points of law, not the Revenue for the Minister for Finance?

    My sister wants to apply for this scheme as a way to keep her staff paid and her business ticking over, but we're both worried. To be clear: I'm not looking for legal advice, to see how other businesses are approaching this.

    The Revenue clearly stated In their guidance on Friday 27th March that a company with cash reserves but experiencing economic disruption on the requisite scale was perfectly entitled to apply for the TWSS.Your post was a few days subsequent to this and was clearly based on an incorrect interpretation of the legislation.
    It is disappointing that you have left an incorrect post on the thread for so long and I hope that you have not caused anyone to fail to apply for the scheme who should have done so.


  • Options
    #68
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    Just Saying wrote: »
    The Revenue clearly stated In their guidance on Friday 27th March that a company with cash reserves but experiencing economic disruption on the requisite scale was perfectly entitled to apply for the TWSS.Your post was a few days subsequent to this and was clearly based on an incorrect interpretation of the legislation.
    It is disappointing that you have left an incorrect post on the thread for so long and I hope that you have not caused anyone to fail to apply for the scheme who should have done so.

    Some of the tripe solicitors are coming out with over this is shocking. I think they're bored. Revenue are pretty good to deal with, if they say they'll give you money they will.


  • Options
    #69
    gb19815
    Registered Users Posts: 56 ✭✭gb19815


    Hi if let go how long do you have to wait to claim tax back ?


  • Options
    #70
    theglobe
    Registered Users Posts: 300 ✭✭theglobe


    Hi all, hope everyone is keeping well. I'd appreciate some help.

    I own a company with no staff and it's been decimated by the coronavirus. I'm still open but not taking a wage - am I eligible for anything?

    Thanks for your help.


  • Options
    #71
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    theglobe wrote: »
    Hi all, hope everyone is keeping well. I'd appreciate some help.

    I own a company with no staff and it's been decimated by the coronavirus. I'm still open but not taking a wage - am I eligible for anything?

    Thanks for your help.

    If you're a director and are paid through PAYE system and you were on payroll at 29th February you are eligible to pay yourself and claim back the wage subsidy which will be repaid 2 days after you submit your payroll. The amount of this subsidy that you can claim back will depend on your average wage from 1st Jan to 29th Feb

    If you fulfil those conditions you can do it through your company


  • Advertisement
  • Options
    #72
    theglobe
    Registered Users Posts: 300 ✭✭theglobe


    Heres Johnny wrote: »
    If you're a director and are paid through PAYE system and you were on payroll at 29th February you are eligible to pay yourself and claim back the wage subsidy which will be repaid 2 days after you submit your payroll. The amount of this subsidy that you can claim back will depend on your average wage from 1st Jan to 29th Feb

    If you fulfil those conditions you can do it through your company

    Thank you. My company is based in America but I domicile here and pay personal tax here. Would that still be okay?


  • Options
    #73
    jammiedodgers
    Registered Users Posts: 1,402 ✭✭✭jammiedodgers


    Dav010 wrote: »
    Up to. €410. The payment subsidy is 70% of net wage up to a max of €410.

    For some reason, those who earn over €585 are only getting a max of €350.

    Anyone know the reason for this?


  • Options
    #74
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    jammiedodgers wrote: »
    Anyone know the reason for this?

    Take a look at this. It answers a lot of the questions people have.

    https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf


  • Options
    #75
    fly_agaric
    Registered Users Posts: 4,847 ✭✭✭fly_agaric


    Heres Johnny wrote: »
    Some of the tripe solicitors are coming out with over this is shocking. I think they're bored. Revenue are pretty good to deal with, if they say they'll give you money they will.

    They were fairly quick out of the traps to try & poke some holes in it as not being "perfect". Not sure what the purpose of that was or what good it will do anyone right now. Same thing will probably happen if govt. starts trying to use some of its new powers to control this disease (the lawyers will show them who is boss...I just wish covid19 and problems it brings in its wake would pay attention to them too!).


  • Options
    #76
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    Stratvs wrote: »
    Take a look at this. It answers a lot of the questions people have.

    https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf

    It doesn't answer that one! I don't know the reasoning behind the sudden drop from 410 to 350 either and I've run 2 full payrolls under this new scheme.


  • Options
    #77
    Dav010
    Registered Users Posts: 14,252 ✭✭✭✭Dav010


    fly_agaric wrote: »
    They were fairly quick out of the traps to try & poke some holes in it as not being "perfect". Not sure what the purpose of that was or what good it will do anyone right now. Same thing will probably happen if govt. starts trying to use some of its new powers to control this disease (the lawyers will show them who is boss...I just wish covid19 and problems it brings in its wake would pay attention to them too!).

    To be fair, the Govt have admitted there are lots of holes in the legislation, it was written in a hurry, accountants weren’t even sure how it would work when it was announced, it was early last week before guidance was published. While the solicitor’s advice might have been well intended, it was questionable. An owner of a limited company who carries on trading while knowing it is insolvent can become personally liable, but applying for the wage subsidy in no way declares insolvency, it is available to any business who can show a 25% drop in income as a result of Covid-19. The whole point of the scheme is to keep businesses solvent and staff employed by subsidising labour costs. The solicitor just pulled the trigger without knowing what he/she was aiming at.


  • Options
    #78
    Heres Johnny
    Closed Accounts Posts: 2,738 ✭✭✭Heres Johnny


    theglobe wrote: »
    Thank you. My company is based in America but I domicile here and pay personal tax here. Would that still be okay?

    I'd imagine it shouldn't make a difference once you've satisfied all the other criteria.


  • Options
    #79
    Dav010
    Registered Users Posts: 14,252 ✭✭✭✭Dav010


    Heres Johnny wrote: »
    I'd imagine it shouldn't make a difference once you've satisfied all the other criteria.

    This is one of the holes identified in the legislation, people living outside the jurisdiction can apply for unemployment payment. So at the moment, you can apply for unemployment payment, how it works when it transfers over to jobseekers in a couple of weeks is a different matter as obviously if you live abroad, you cannot declare that you are available for work here.

    Also, to set up a mygovID might be a challenge as you have to confirm your mobile phone number/ID in a LA office.


  • Options
    #80
    DUBACC
    Registered Users Posts: 486 ✭✭DUBACC


    One anomaly coming up for a few of my clients (accountant in practice).

    A few clients are on a quarterly PAYE payment, and as a result their Q1 payment is not due until later this month. For various reasons, their February submission was late - reason they all gave was sure the payment isnt due until late April! Whatever the ins & outs of late submissions, the complete exclusion from the scheme is a pretty harsh penalty. Revenue have said they are unable to look at this on a case by case basis as the legislation around it is very restrictive.


  • Options
    #81
    theglobe
    Registered Users Posts: 300 ✭✭theglobe


    Dav010 wrote: »
    This is one of the holes identified in the legislation, people living outside the jurisdiction can apply for unemployment payment. So at the moment, you can apply for unemployment payment, how it works when it transfers over to jobseekers in a couple of weeks is a different matter as obviously if you live abroad, you cannot declare that you are available for work here.

    Also, to set up a mygovID might be a challenge as you have to confirm your mobile phone number/ID in a LA office.


    Thanks. I actually live here full-time. I run the American company online. Which form should I be filling out so? Sorry for all the questions, I think I'll give them a quick call tomorrow as well.


  • Advertisement
  • Options
    #82
    Dav010
    Registered Users Posts: 14,252 ✭✭✭✭Dav010


    theglobe wrote: »
    Thanks. I actually live here full-time. I run the American company online. Which form should I be filling out so? Sorry for all the questions, I think I'll give them a quick call tomorrow as well.

    Start with this:

    https://www.gov.ie/en/service/b6ecfd-sign-up-for-mygovid/

    Then this:

    https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/


  • Options
    #83
    RCSATELLITES
    Registered Users Posts: 515 ✭✭✭RCSATELLITES


    Dav010 wrote: »
    I can’t think of a business that would not be down.

    https://www.irishtimes.com/business/retail-and-services/march-busiest-month-for-irish-grocery-sales-on-record-1.4221972

    Say that again


  • Options
    #84
    Dav010
    Registered Users Posts: 14,252 ✭✭✭✭Dav010


    RCSATELLITES wrote: »
    https://www.irishtimes.com/business/retail-and-services/march-busiest-month-for-irish-grocery-sales-on-record-1.4221972

    Say that again

    Which of us didn’t do extra shopping at the beginning of the month? My wife was in local Dunne’s this morning, she said it was very quiet. People stockpiled food, now we know there isn’t going to be a shortage, social distancing and using up the stockpiled food mean that surge will drop to normal/lower levels. People will only go now when they have to. But ya, I get your point, we still have to eat so grocery store sales will be about the only exception. As for the online, as reduced wages effect disposable income, online sales will take a hit as well.

    Interestingly, the article is a survey of 5000 shoppers and does not include data from the supermarkets which would include any increase in costs of supplying the food on their shelves.

    Edit: https://www.google.ie/amp/s/www.rte.ie/amp/1129229/


  • Options
    #85
    2Mad2BeMad
    Registered Users Posts: 2,790 ✭✭✭2Mad2BeMad


    Just incase people are curious.

    I got paid today, I get paid fortnightly.
    I was not taxed at all full pay with 70percent subsidy.

    Id advise anyone who experience something similar to put any money extra that you get from the tax refund from this to put it in a savings account and don't touch it as revenue will look for it by the end of the year.

    I know this is common sense but desperate times for a lot of people and it will be easy to forget you owe it come the new year. Last thing you need after Xmas is a big bill from revenue


  • Options
    #86
    Dav010
    Registered Users Posts: 14,252 ✭✭✭✭Dav010


    2Mad2BeMad wrote: »
    Just incase people are curious.

    I got paid today, I get paid fortnightly.
    I was not taxed at all full pay with 70percent subsidy.

    Id advise anyone who experience something similar to put any money extra that you get from the tax refund from this to put it in a savings account and don't touch it as revenue will look for it by the end of the year.

    I know this is common sense but desperate times for a lot of people and it will be easy to forget you owe it come the new year. Last thing you need after Xmas is a big bill from revenue

    There is no income tax nor USC on the subsidy.. If your employer topped up to full wage, you didn’t pay tax because you are in credit with Revenue, this will balance out in the coming weeks, you will be paying tax only on the top up amount, not the subsidy.


  • Options
    #87
    PaybackPayroll
    Registered Users Posts: 129 ✭✭PaybackPayroll


    Dav010 wrote: »
    There is no income tax nor USC on the subsidy.. If your employer topped up to full wage, you didn’t pay tax because you are in credit with Revenue, this will balance out in the coming weeks, you will be paying tax only on the top up amount, not the subsidy.

    Please look at section 3.11 of version 5 of the FAQ:
    https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-temporary-covid-wage-subsidy-scheme.pdf

    Is the wage subsidy taxable on the employee?
    The payments are liable to income tax; however, the subsidy is not taxable in real-time through the PAYE system during the period of the Subsidy scheme. Instead the employee will be liable for tax on the subsidy amount paid to
    them by their employer by way of review at the end of the year.
    When an end of the year review takes place, it may be the case that an employee’s unused tax credits will cover any further liability that may arise. Where this is not the case, and should an Income Tax liability arise, it is normal
    Revenue practice to collect any tax owing in manageable amounts by reducing an individual’s tax credits for a future year(s) in order to minimise any hardship. Additionally, if an individual has any additional tax credits to claim, for example health expenses, this will also reduce any tax that may be owing.


    (Please note that these FAQs change very frequently, so what is correct today, may not apply tomorrow)


  • Options
    #88
    Just Saying
    Registered Users Posts: 305 ✭✭Just Saying


    DUBACC wrote: »
    One anomaly coming up for a few of my clients (accountant in practice).

    A few clients are on a quarterly PAYE payment, and as a result their Q1 payment is not due until later this month. For various reasons, their February submission was late - reason they all gave was sure the payment isnt due until late April! Whatever the ins & outs of late submissions, the complete exclusion from the scheme is a pretty harsh penalty. Revenue have said they are unable to look at this on a case by case basis as the legislation around it is very restrictive.

    Was wondering what would happen if that were the case.I do my own...I was late in Jan but thankfully on time in Feb!!


  • Options
    #89
    Dav010
    Registered Users Posts: 14,252 ✭✭✭✭Dav010


    https://revenue.ie/en/corporate/communications/covid19/temporary-covid-19-wage-subsidy-scheme.aspx

    Seems in contraction to what is published here.

    • Income tax and USC will not be applied to the subsidy payment through the payroll.


  • Options
    #90
    Seve OB
    Registered Users Posts: 15,884 ✭✭✭✭Seve OB


    ilovespudss wrote: »
    One question. As you've explained above, if the employer tops up by more than the allowed top up amount, the subsidy is tapered. In the case where subsudy+top up+tax refund results in a net pay greater than the employees average net pay, is the subsidy tapered then? Will payroll need to reduce the top up amount to allow for the tax refund, so as not to exceed the employees average net pay?

    no, once the subsidy plus top up is not greater than the average net pay

    theglobe wrote: »
    Thanks. I actually live here full-time. I run the American company online. Which form should I be filling out so? Sorry for all the questions, I think I'll give them a quick call tomorrow as well.

    this is an irish government scheme for irish companies. i can't imagine that you qualify if your company is not irish registered. it has to be applied for through ROS, are you even on that? does your pay come through the Irish PAYE system or is it just billed and you submit an annual tax return?

    2Mad2BeMad wrote: »
    Just incase people are curious.

    I got paid today, I get paid fortnightly.
    I was not taxed at all full pay with 70percent subsidy.

    Id advise anyone who experience something similar to put any money extra that you get from the tax refund from this to put it in a savings account and don't touch it as revenue will look for it by the end of the year.

    I know this is common sense but desperate times for a lot of people and it will be easy to forget you owe it come the new year. Last thing you need after Xmas is a big bill from revenue

    you and your company could be in trouble here. did they pay you a full top up to your usual gross? if so they can't do that. subsidy plus top up cannot be greater than your average net pay (which as pointed out about is not necessarily your net pay going into your bank)
    Dav010 wrote: »
    There is no income tax nor USC on the subsidy.. If your employer topped up to full wage, you didn’t pay tax because you are in credit with Revenue, this will balance out in the coming weeks, you will be paying tax only on the top up amount, not the subsidy.

    oh there absolutely is income tax and use on the subsidy. you just don't have to pay it now.


  • Advertisement
  • Options
    #91
    theglobe
    Registered Users Posts: 300 ✭✭theglobe


    Dav010 wrote: »
    Start with this:

    https://www.gov.ie/en/service/b6ecfd-sign-up-for-mygovid/

    Then this:

    https://www.gov.ie/en/service/be74d3-covid-19-pandemic-unemployment-payment/


    Thanks so much.


Advertisement