28823: Processing the Employment Wage Subsidy Scheme (EWSS) in Sage Payroll

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Author: jennie

New Employment Wage Subsidy Scheme (EWSS):

The government have introduced an extended Wage Subsidy Scheme in the form of the “Employment Wage Subsidy Scheme” otherwise known as the EWSS. The scheme provides a flat-rate subsidy to qualifying employers based on the numbers of paid and eligible employees on the employer’s payroll. It came into affect on the 31st July 2020 and it replaces the Temporary Wage Subsidy Scheme (TWSS) which has been in existence since the 4th May 2020. The EWSS is expected to run until the end of March 2021. The eligibility particulars for the EWSS are different to the TWSS, so if you didn’t qualify for the TWSS, there is a chance that you will qualify for the EWSS.

We have outlined the main points from this below, but please refer to the Revenue article for full details –> July Job Stimulus (including EWSS).

 

Joining the EWSS:

If you didn’t qualify for the TWSS, but you qualify for the EWSS, you must join the EWSS scheme from the ROS Website. This can be can be done as follows:

  1. Ensure your company has a valid Tax Clearance Certificate. (If not  go to “ROS > My Services > Other Services > Manage/Verify Tax Clearance”).
  2. Register for EWSS  on ROS under “My Services > Other Services > Manage Tax Registrations > Employment Wage Subsidy Scheme > Register > Accept Declaration”

 

How Will the EWSS Affect Payroll Processing?

Under the EWSS the processing of payroll will return to the normal manner (i.e. calculating and deducting Income Tax, USC and employee PRSI through the payroll). As the EWSS beneficiary is the employer, there will be no visibility of it on payslips and employers PRSI will remain at 0.5% (as per the TWSS),

The employee will however need to be flagged in the software as being part of the EWSS, Customers should be on V23.5 or V24.0 so there is no need to run any update for the EWSS.

 

Global EWSS Changes

  1. Go to “Miscellaneous > COVID-19 > Edit Employee EWSS/TWSS Setup”.
  2. Select the option that best matches your requirement (you can change individual employee records for exceptions to this afterwards).
    – Change all employees…
    – Disable all employees…
    – Enable all employees….
  3. Amend individual employee records for exceptions to the above under the “Payment” tab.
  4. Ensure your employees are on the correct scheme and PRSI code (under the “Employee Record”).
What Will the New Subsidy Rates Be?

Under the EWSS, eligible employers will receive a per-head subsidy on a flat-rate basis which will be determined based on the amount of gross pay that the employer pays to the eligible employee as shown in the table below. Payments to employers will be made monthly in arrears.

Pay dates before 20 October 2020 and after 31 January 2021

For every employee paid between:

  • €203 and €1,462 gross per week, the subsidy is €203
  • €151.50 and €202.99 gross per week, the subsidy is €151.50.

Pay dates before 20 October 2020 and after 31 January 2021

For every employee paid between:

  • €400 and €1,462 gross per week, the subsidy is €350
  • €300 and €399.99 gross per week, the subsidy is €300
  • €203 and €299.99 gross per week, the subsidy is €250
  • €151.50 and €202.99 gross per week, the subsidy is €203.

Subsidy payment frequency

For monthly pay periods, reporting four or five insurable weeks, gross-weekly wage is calculated by:

  • multiplying the gross monthly wage by 12
  • dividing the result by 52.

For more information please see the revenue website: https://www.revenue.ie/en/employing-people/ewss/index.aspx 

 


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