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Revenue to withhold EWSS from firms who fail to file on time

Revenue to withhold EWSS from firms who fail to file on time.

As we are all aware, the emergency funds set up by the Government at the beginning of the Covid-19 emergency have seen many changes and adaptations over the last 18 months, both the Pandemic Unemployment Payment (PUP) and the Employee Wage Subsidy Scheme (EWSS) have continued to change and adapt to suit the current needs of the pandemic. Following on from the recent announcement of a move for Ireland from a period of continued restrictions to an easing into personal accountability and no further requirement to work remotely after late October, there are certain to be more changes and the likely phasing out of these schemes ahead.

We have often discussed in recent years, the many ways in which Revenue have automated their processes and functions to facilitate increasingly efficient compliance reviews, and in line with this, they have begun to increase checks on these schemes to ensure continued eligibility. As Covid restrictions begin to be lifted, new measures are required to ensure the smooth and fair operation of the scheme.

Revenue’s latest figures have shown that almost 41,000 employers were registered for the EWSS at the end of August 2021 and eligibility review forms have been issued to all. With only 70% of businesses having returned these forms, it is important to ensure that all business and financial information is up to date and presented to Revenue on time as Revenue will withhold all support payments from employers who fail to file their forms on time.

These previous deadlines had been amended on two occasions. Access to the EWSS will be effectively paused until forms are submitted. This system of pausing is in place from Sept 1st, once eligibility is confirmed, payments will resume. Revenue have clarified this by saying;

Where such businesses subsequently complete and submit the outstanding EWSS eligibility review forms, and thereby confirm they continue to meet the eligibility criteria of the scheme, they can resume claiming EWSS support […] Any subsidies claimed but not paid while EWSS eligibility review forms were outstanding will then also be processed for payment.”

We would advise getting eligibility forms submitted before the deadline each month for the previous month to avoid any delays or disruptions to your payments, which could financially damage your business. Should you have any concerns or queries on any business or financial matters please do not hesitate to contact us here at EcovisDCA where we will be happy to help.

Changes to Employee Wage Subsidy Scheme

Changes to the Employee Wage Subsidy Scheme

As we are all aware, the Employee Wage Subsidy Scheme (EWSS) has been an integral part of protecting Irish businesses during the Covid-19 pandemic emergency. The scheme has seen many changes and taken on new forms over the course of the past year, having been set up on an emergency basis but requiring updates and extensions as the pandemic continues. The latest extension to the EWSS states that The Finance (Covid-19 Miscellaneous Provisions) Act 2021 has allowed for the scheme to be extended through to December 31st, 2021.

With this extension come two major changes to how the scheme will operate going forward. As our country slowly continues the reopening process, these changes will be important to ensure that the scheme is allocated appropriately.

The two new key changes to the EWSS are as follows:

Change to Assessment Period.

The assessment period for eligibility to this scheme has now changed. It is now a requirement to show that your business will incur a 30% reduction in turnover* or orders for the 2021 calendar year as a direct result of Covid-19.
This can be assessed by:

Comparison to the 2019 calendar year if the business was in operation for the full year.
Comparison to the date of commencement to December 31st, 2019, if business commenced between January 1st and October 31st, 2019.
Comparison to projections for the 2021 calendar year, based on the assumption that the Covid-19 emergency had not occurred, if business commenced on or after November 1st, 2019.

*It is important to note that childcare businesses remain exempt from the 30% calculation criteria.

Mandatory Monthly Reviews to be Submitted Online.

A new key criterion to maintaining eligibility for the EWSS is the undertaking of monthly performance reviews for your business to ensure that your business continues to meet the eligibility criteria for this scheme.

A new form (EWSS Eligibility Review Form) has been created for this purpose, which must be submitted online on a monthly basis.

This form must be submitted by August 15th for June’s reviews and following on from this, will be expected by the 15th of each month.

We hope that this information has been useful for you and as always, please don’t hesitate to contact us here at EcovisDCA where we remain open and ready to help. Please do not hesitate to contact us.

For more information visit Revenue.ie