Temporary COVID-19 Wage Subsidy Scheme (TWSS)

TWSS reconciliation

The TWSS closed on 31 August 2020. There is a requirement for an accurate reconciliation between the:

  • subsidy amounts refunded by Revenue to employers
  • and
  • amounts of subsidy that were paid to employees by employers.

During the transitional phase (26 March to 3 May 2020) an employer was expected to:

  • calculate the Average Revenue Net Weekly Pay (ARNWP)
  • pay the correct wage subsidy to the employee via payroll.

During this period, Revenue refunded employers, the maximum subsidy amount of €410 per employee, per week.

When the TWSS entered the operational phase (4 May to 31 August 2020) Revenue:

  • provided employers with the relevant employee information to ensure the correct subsidy amount was paid to each employee
  • refunded the employer on that basis.

Requirement for employers to provide subsidy paid data

Revenue requires employers to report the actual subsidy that they paid to employees on each pay date to determine:

  • if an employer either:
    • needs to repay Revenue any amount of the subsidy paid to them
    • or
    • did not receive the full subsidy payments due at the time and is entitled to additional payments
  • how much of the subsidy amount was actually paid to each employee by their employer. This figure will be used to calculate, as part of the End of Year review, the correct amount due from employees in respect of:

Revenue requires employers to provide the subsidy paid data under legislation. The legislative basis is provided in subsection 5(J) of section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020.

What do you need to do for the reconciliation process?

This reconciliation process is in two stages.

Stage one

You are required to report the actual subsidy that was paid to your employees, for each pay slip and each pay date. If you have already done so there is no need to resubmit this data.

You can view your up-to-date position of subsidy paid data submitted through the Revenue Online Service (ROS) under the category ‘TWSS Reconciliation’.

Stage two

All active payslips you submitted will be examined by Revenue. The subsidy payable amount for each payslip will be determined based on the rules of the TWSS. The total subsidy payable amounts will be compared against the subsidy amounts paid to the employer.

A Statement of Account will be sent to your ROS inbox. You will either be:

  • paid any additional amount due to you by Revenue.
  • required to repay any amount that you owe to Revenue.

How to report subsidy paid data

Subsidy paid information must be returned to Revenue before 31 October 2020.

You can report the actual subsidy paid to employees to Revenue by:

  • direct reporting through payroll submission. Please check with your payroll provider to determine if this option is supported
  • or
  • direct entry in ROS payroll reporting
  • or
  • a subsidy CSV file upload.

Negative amounts should not be reported for subsidy paid.

Further information is available in Reporting subsidy paid to Revenue instructions.

Failure to provide subsidy paid data to Revenue

If you do not provide this data about payments to your employees, Revenue will recoup from you the total temporary wage subsidy paid and related interest charges.

Further information on the TWSS Reconciliation is available in the Employer FAQ V18 Guidance Document.

Next: List of Employers who received payments under the TWSS