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The wage subsidy scheme

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  • 23-08-2020 9:15pm
    #1
    duffysfarm
    Registered Users Posts: 846 ✭✭✭


    bit of a rant here about The Wage subsidy Scheme but here goes; (this may be more aimed at boardsies in practice but open to everyone)

    so with the out break of covid 19 employers had two options.

    option 1 - let staff go and they claim pup payment of €350 per week. No questions asked and no compliance checks as far as i have heard. nothing to worry about as long as your not breaking the rules.

    option 2. to encourage employers not to let staff go they came up with TWSS and the max someone can get is basically the same as the €350 per week. however in roughly 4 months they have 17 versions of the programme/guidelines and now they are sending compliance letters to agents giving them 5 days to reply (bit over the top in my opinion)

    if it was again i would tell employers to just let staff go and let them claim the pup and forget about TWSS as it was a massive pain in the behind


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    #2
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,035 Mod ✭✭✭✭Jim2007


    Better suited to the politics fora


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    #3
    Jinglejangle69
    Registered Users Posts: 7,246 ✭✭✭Jinglejangle69


    Haven't revenue said that as long as employers had reason to believe turnover would be down they won't go looking for claw backs.

    So even if turnover wasn't down its OK to have claimed it if you thought your turnover would be down.

    Going forward now they want proof it is down.


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    #4
    Dempo1
    Registered Users Posts: 26,934 ✭✭✭✭Dempo1


    Hmmmm, the fun starts, I've absolutely no doubt there's been rampant abuses of TWSS, I've lost count of the amount of people I've spoken too who've had wages cut, expected to work same hours and not a jot of a difference in work load or turnover, it begs the question, Where's the money going, if you consider businesses getting 75% payroll being paid by the government. Farce of a scheme and has only propped up cowboys and created a false economy.

    Is maith an scáthán súil charad.




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    #5
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    The TWSS comes to an end now and is replaced by the EWSS and that is much much more stringent. Id say if the employer puts themself on that then things need to be pretty bad.


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    #6
    Dempo1
    Registered Users Posts: 26,934 ✭✭✭✭Dempo1


    lomb wrote: »
    The TWSS comes to an end now and is replaced by the EWSS and that is much much more stringent. Id say if the employer puts themself on that then things need to be pretty bad.

    Will suit some businesses but I agree, alot more strict, not sure if I read it right but only 8,000 employers registered so far? This is a fraction of the amount on the TWSS. very little mention of the 5/6 week wait for employers to be paid the new subsidies from pascal today and there's murmers from opposition TD'S that Pascal's notion employers can pay a little more to PT employees so they get the smaller subsidy seems to be at odds with Revenues own rules, the tax clearance cert requirements also causing issues I believe.

    Is maith an scáthán súil charad.




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    #7
    duffysfarm
    Registered Users Posts: 846 ✭✭✭duffysfarm


    Things are pretty bad for some businesses!
    lomb wrote: »
    The TWSS comes to an end now and is replaced by the EWSS and that is much much more stringent. Id say if the employer puts themself on that then things need to be pretty bad.


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    #8
    Sonny LoSpecchio
    Registered Users Posts: 30 ✭Sonny LoSpecchio


    Anybody have any clue how much extra tax the revenue will take each week to cover our latest covid payments? I heard today they took 55% of somebody's wage!. I'm praying it's a lie


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    #9
    Stratvs
    Registered Users Posts: 958 ✭✭✭Stratvs


    Sonny LoSpecchio wrote: »
    Anybody have any clue how much extra tax the revenue will take each week to cover our latest covid payments? I heard today they took 55% of somebody's wage!. I'm praying it's a lie

    If you're talking about the PUP which is paid directly to the employee then Revenue will tax 2021 in 2021 and that will be done after return to work by adjusting the employee's tax credits. There is a long thread on Boards about that if you take a look. Initially DSP will annualise the payment and it may take a few weeks after return to work for it to settle but ultimately tax will only be due on amounts in excess of tax credits available. However in the first week or two after return to work deductions may seem higher than expected but will correct once DSP notify Revenue that the PUP claim is ceased.

    This thread was originally on the TWSS where the payments were for the employee but were not taxed in the hands of the employee. That created the situation where some people ended up owing amounts for 2020.

    The successor, the EWSS is a subsidy to the employer not the employee so there is no implication tax wise for the employee.

    Found that thread on PUP here it is :-
    https://www.boards.ie/vbulletin/showthread.php?t=2058157353&page=3


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