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Introduction

From 4 May 2020, the TWSS (Temporary Wage Subsidy Scheme) begins the Operational Phase.

The main difference to the Transitional Phase is that Revenue now supply 'Calculation CSV' files that should be downloaded and used to calculate the subsidy and any additional payment amounts.

Revenue advise that they will refund the applicable wage subsidy having regard to the maximum wage subsidy and the level of gross pay reported by the employer for each eligible employee. At a later date, Revenue will reconcile the amount of the employer wage subsidy refunds from 26 March with the maximum wage subsidy applicable to each employee. This may involve recouping refunded amounts from employers.

Before running the operational phase, please make sure that you have upgraded to at least version 2020.10.

https://www.payback.ie/support/downloads/

 

Here are instruction on how to process the Operational Phase.

Downloading CSV file Step 1

Log into ROS and in the ROS My Services tab select “Request RPNs”

Downloading CSV file Step 2

Select Request Temporary Wage Subsidy Scheme calculation

Importing the CSV file Step 1

There is a new screen in Payback (Please make sure that you are using at least version 2020.10) for importing the CSV file.

This can be found in the Revenue section of the main menu at the left of the screen and is called Covid19

Click the Load File button and select the CSV file you downloaded from ROS

Importing the CSV file step 2

If you are happy with the contents listed, click the Import button at the top of the screen.

A message will appear to inform you that the file has been successfully imported.

Setting up the Operational Scheme

After you have installed (at least) version 2020.10, you will see a new button at the top of the employee screen.

Select the employee you wish to set this scheme up for in the Employee Grid.

Click the Covid-19 button.

The new Covid19 screen

We have changed the Covid19 screen for the operational phase.

Please make sure that you have the 4 May onward Payments tab selected.

You will see that there are now two new buttons, Show CSV Values and Show Graph

 

This screen now uses the values you imported from the CSV file

Checking the CSV values

If you click the Show CSV Values button, you can see the values that were imported for this employee.

The CSV file works in a similar way to the RPN import. Subsidy values are matched on the Employee's PPS Number and also Employment ID.

Using a different Employment ID

If multiple records for the same employee were found in the CSV file, you can now choose which one to use.

In the CSV values screen, a drop down will appear if multiple records were found.

 

Select which one you wish to use.

Graph facility

The scheme rules are very complex, so to help you see how the Subsidy and Total Bet compare with different top up amounts, we've provided a graph facility.

Using this graph, you will notice all the 'pit falls' in the scheme. You can see where there are sections where the total net suddenly decreases if you use certain 'top up' amounts.

Most striking is that it is never beneficial to exceed the first tier maximum top up amount.

This is of mot benefit if you decide to override the CSV values and enter your own amounts.

Saving the values

Enter the amount of Top up you wish to pay. Try to keep it under the Max top up before taper value, otherwise the subsidy amount will be reduced.

When you are happy with the figures click the Save button.

The new values will be written to the employee elements grid, overwriting the values used for the Transitional Phase (if you used this)

Removing an employee from the scheme

If you no longer wish to use the scheme for an employee, you can remove them by following these steps:

  1. In the Employee screen go to the Elements grid and delete the Covid element(s)
  2. In the PRSI tab, make sure that the employee has their correct PRSI class selected (probably A), and not J9
  3. Click Update Employee
  4. If the employee is on a salary, you will have to also re-enter their salary details. Click update employee when you have done this.
  5. In the Payroll screen, select the pay date you wish to pay.
  6. If there are any Covid elements, then click Pay and then click Rewind in the Payroll screen. You may have saved a previous payment for this pay date.

Note that you will not be able to delete, or resubmit any Revenue Payroll Submissions that have Covid (J9) payments, either through Payback or via ROS.ie

An unfortunate 'side effect' of this scheme, is that the salary amounts are removed for participating employees. The is because as part of the scheme, any employee who has the Covid element should not also be getting a
salary, as the salary amount will reduce the subsidy amount - possibly to zero. Instead, the new taxable top up element should be used.

We only had a matter of a few days to develop this system and there was no other easy way to make it so that any salary amount was not also paid.

Notes

If you have employees who were temporarily laid off and now you wish to re-instate them then if you submitted a PSR with their leave date, you will have to set up as a new employee with a new employment ID as described here:

https://www.payback.ie/support/paye-modernisation/re-employing-people/

If you did not submit a PSR to Revenue with a leave date, you can continue to pay them as usual, with their old record. You may have to undo any P45 leave date if you entered one.

 

  • It does not ever appear to make sense to top up above the maximum top up amount. Once you go above the maximum top up amount, the subsidy is reduced by the same amount, making it a fruitless endeavour. It does not appear to be beneficial to either the employee or employer to use anything other than tier one, or to use tapering. You can see this if you use the Graph facility
  • Revenue advise against 'Grossing up' while using this scheme.
  • Income tax, USC, LPT, if applicable, and PRSI are not deducted from the Temporary Wage Subsidy. However, the employee will be liable to Income Tax and USC on the Subsidy by way of review at the end of the year.
  • Employers should not deduct a pension contribution from a Temporary Wage Subsidy payment.
  • The Revenue FAQ changes frequently and can be found here: https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-twss.pdf

 

 

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