Wage subsidy scheme IrelandUpdated EWSS eligibility criteria and requirements to file a monthly Eligibility Review Form through ROS1. Employment Wage Subsidy Scheme to 31st December 2021The Finance (Covid19 and Miscellaneous Provisions) Bill 2021 extends the Employment Wage Subsidy Scheme to 31st December 2021. This extension brings with it updated eligibility criteria with respect to pay dates effective from 1st July 2021. In addition to the updated eligibility criteria, employers are now required to complete an online employer Eligibility Review Form (ERF) through ROS on a monthly basis.2. New eligibility criteria to claim EWSSIn addition to having tax clearance for the duration of the scheme, an employer must be able to demonstrate to the satisfaction of Revenue that their business is expected to experience a 30% reduction in turnover or customer orders in the period from 1 January to 31 December 2021 for pay dates on or between 1 July and 31 December 2021, and this disruption to normal operations is caused by COVID-19.This reduction in turnover or customer orders is relative to:• the period 1 January to 31 December 2019 where the business was in existence prior to 1 January 2019;• where the business commenced trading between 1 January and 31 October 2019, from the date of commencement to 31 December 2019; or• where a business commenced on or after 1 November 2019, the projected turnover or orders for 1 January 2021 (or date of commencement if later) to 31 December 2021 as if the pandemic had not occurred.3. Examples of how this would work are as follows:Eligibility Review Test – Pay dates 1 July to 31 December 2021Date Trade Started2021 ResultsEligibility Review ComparisonExplanation1 Jan 19951 Jan to 31 Dec 20211 Jan to 31 Dec 2019Trade in existence pre-1 Jan 201915 March 201915 March to 31 Dec 202115 March to 31 Dec 2019Trade commenced between 1 Jan and 31 Oct 2019 so 2019 turnover compared with turnover of same period in 20211 Feb 20201 Jan to 31 Dec 20212021 Projections as if pandemic had not occurredTrade commenced after 1 Nov 2019 so no 2019 turnover exists for comparison purposes. Comparison to be against projections prepared as if the pandemic had not occurred e.g. for banking/grant application purposesChildcare business’s registered in accordance with Section 58C of the Child Care Act 1991, are not required to meet the reduction in turnover or customer order test.4. EWSS Eligibility Review FormTo assist employers in ensuring continued eligibility for the scheme, from 30 June 2021, all employers will be required to complete and submit, through ROS, an online monthly EWSS Eligibility Review Form. The initial submission should be made between 21 and 30 July 2021. Through ROS, employers will need to provide details of actual monthly vat exclusive turnover or customer order values for 2019, together with the same detail for the first six months of 2021. They will also need to provide details of monthly projections for the remainder of 2021 i.e. July to December 2021. Appendix I provides additional detail on how to access and complete the application on ROS.On the 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. This can be summarised as follows:Submission Due DateActual monthly figures to be returnedProjected monthly figures to be returned31 July 2021January to December 2019 January to June 2021July to December 202115 August 2021July 2021August to December 202115 September 2021August 2021September to December 202115 October 2021September 2021October to December 202115 November 2021October 2021November and December 202115 December 2021November 2021December 20215. Final thoughtEmployers should retain their evidence and basis for remaining in the scheme for potential review or enquiry by Revenue at a future date.If you would like to discuss any aspect of the wage subsidy scheme, please contact Jennifer Power.Further Articles What investors look for in food businessesFive top tips on what investors look for in a food business. Read Blog Is it easy to change accountantsAt some stage in their business lifecycle, a retailer might decide to change accountant.… Read Blog
