Our Partner, Brendan Twohig recently met with Eoghan Dalton from WLR FM for their weekly Hot Desk Show. Brendan discussed the current Temporary Wage Subsidy Scheme that is currently being availed of by many businesses in Waterford. He had some timely advice for businesses using this scheme. This article summarises the advice that Brendan gave on the show.
The Wage Subsidy Scheme was announced on 24 March 2020. It allows employers to continue to pay their employees during the COVID-19 emergency. It aims to keep employees registered with their employers, so that they will be able to get back to work quickly after the pandemic. The scheme will run until the end of August 2020.
One of the problems with the Temporary Wage Subsidy Scheme (TWSS) has been a lack of clarity and there has been confusion around employers’ eligibility to continue on the scheme as businesses reopen.
While initially most of the focus was on ‘the 25% test’, in recent weeks the Revenue has made it clear that employers must also consider where or not they are able to pay ‘normal wages’ – in addition to considering if their turnover for Q2 has fallen by 25%.
The implication appears to be that employers need to consider signing off the scheme as their turnover improves and in the meantime the Revenue “would expect to see contributions to wages increasing if cash reserves start to increase during the trading period”.
We hope you find this advice from Brendan useful and that your business gets back to trading as usual as soon as possible. Please feel free to contact us on 051 840800 or email us at email@example.com if you have any questions about our services.#
Listen the full interview from Brendan on the podcast below.