Revenue commenced the reconciliation process for the Temporary Wage Subsidy Scheme (TWSS) and issued reconciliation statements to relevant employers in mid-March 2021. These statements were issued directly to employers’ Revenue Online Service (ROS) inbox instead of by post.
The TWSS was in place from March 2020 to August 2020 and was designed to encourage employers impacted by COVID-19 to keep their employees on the payroll. You will only receive a TWSS reconciliation statement if you availed of the TWSS from March to August 2020.
These reconciliation statements compare the subsidies Revenue paid to employers against the amounts Revenue calculate the employer was entitled to receive.
At the beginning of the subsidy period, in March, April and May 2020, Revenue had to act quickly to pay subsidies out and their software could not be updated as urgently as they required. They therefore paid the maximum subsidy for each employee as a straightforward payment, even though that level of subsidy was not due. This was a decision taken by Revenue to facilitate payments as fast as possible to all relevant taxpayers, and Revenue were very clear then – and throughout the operation of the TWSS – that the excess of the maximum subsidy paid over the amount due would have to be paid back to them.
Employers must now compare the reconciliation statement against their payroll records to determine whether the amounts demanded by Revenue are correct.
Employers will have until 30th June 2021 to:
- Accept the reconciliation calculation issued by Revenue,
- Make corrections to employees’ payslips if necessary, or
- Query any discrepancies with Revenue through MyEnquiries
Once an employer accepts the reconciliation calculation a Statement of Account will be sent to their ROS inbox. Employers must then pay any additional amount owed to Revenue or they will be refunded any additional amount owed by Revenue to them.
Please note that on 1st July 2021, Revenue will deem the reconciliation statement to be due and payable, and it will not be possible to raise any queries with Revenue on the amounts demanded. It is therefore very important that you fully check the reconciliation and raise your queries well in advance of 30th June 2021.
Any amounts due back to Revenue of €500 or less will be deemed to be balanced by Revenue and are not payable to them.
Debt Warehousing or Phased Payment Arrangements may be available to assist with payment of any amounts due to Revenue.
The payroll team in UHY Farrelly Dawe White are available to assist employers with reviewing the reconciliation or resolving any queries arising. If you require further information please email firstname.lastname@example.org
Contact a member of our team today.
+353 42 933 9955