Temporary Wage Subsidy Scheme (TWSS) reconciliation

  1. Overview
  2. Why does a reconciliation balance arise?
  3. The reconciliation finalisation process

Why does a reconciliation balance arise?

The TWSS reconciliation balance is the difference between the subsidy amounts paid to you by Revenue and the subsidy amounts properly due for your employees and paid to them.

We treated an employer as balanced if their reconciliation balance was a liability to Revenue of €500 or less. No repayment of TWSS was required in these cases. In some cases, Revenue owes further TWSS payments to employers. Any such amounts will be paid out to employers where all subsidy paid data has been reported.

Transitional phase

Most reconciliation balances arise from the operation of the transitional phase of TWSS (26 March to 3 May 2020).

During the transitional phase of TWSS, Revenue operated a simplified process so that employers could be supported as quickly as possible. Revenue paid employers the maximum subsidy amount of €410 per employee, per week. Employers were advised to pay eligible employees 70% of the employee’s average net weekly pay. This meant that there was an overpayment to employers built into the transitional phase of the scheme. This overpayment will be reflected in the reconciliation balance.

Many employers have already repaid the overpayment for this period. This will be reflected in the Statement of Account that issues to your Revenue Online Service (ROS) inbox.

Operational phase

During the TWSS operational phase (4 May to 31 August 2020), Revenue provided employers with relevant employee information to use when calculating each employee’s subsidy. This means that the correct subsidy amount should have been paid to the employer in respect of each employee. Therefore, many employers did not have a reconciliation balance for the operational phase.

However, some employers have a reconciliation balance from the operational phase due to errors made in the claiming of TWSS.

Note

The reconciliation balance is the difference between the total subsidy paid to you and the amount properly payable for your employees. It does not take account of any repayments of TWSS you may have already made to Revenue.

After reconciliation is finalised, Revenue issues a Statement of Account to you. This shows your final position, taking account of any repayments you have already made to Revenue.

Next: The reconciliation finalisation process