Can I keep my staff on the EWSS?

Last week as part of their Economic Recovery Plan the Government announced an extension to the Employment Wage Subsidy Scheme (EWSS) confirming that it will continue through to 31 December 2021.

The current enhanced payment rates, which have a maximum subsidy payment of €350 per week per employee, will be maintained for July, August, and September.

The review period for assessing the eligibility for employers will be extended from 6 months to 12 months which should ensure more firms can continue to claim the subsidy e.g. any business that was in existence before 1 January 2019, rather than comparing sales figures for January to June 2021 with sales figures for January to June 2019 they will compare projected sales figures for the entirety of 2021 with the sales figures for 2019.

What has not changed, however, is that employers need to review their eligibility to continue to claim the EWSS at the end of every month. 

So as employers reopen their businesses they must, along with having a valid tax clearance cert, review their actual and projected sales and ensure that they are satisfied that they will experience a projected 30% decline in sales/customer orders due to the effects of the COVID-19 pandemic. 

If, on review, they no longer meet the criteria then they should exit the scheme and not continue to claim the subsidy in respect of their employees.

 

 

Date published 9 Jun 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.