Certain directors can now claim employment wage subsidy

Directors that control more than 15pc of a business can now claim the Employment Wage Subsidy Scheme (EWSS).

This follows an update from the Minister for Finance, Paschal Donohoe.

From tomorrow EWSS will replace the Temporary Wage Subsidy Scheme.

The subsidy, which is based on an employees gross weekly wage, can be claimed by directors in cases where the employer meets the eligibility criteria for the EWSS.

In addition, the director must on the payroll of the eligible employer, and he or she must have been paid wages by the employer, which were reported to Revenue at any stage between 1 July 2019 and 30 June this year.

Where a person is a proprietary director of two or more eligible companies – that is they control more than 15pc of two or more firms – a claim for EWSS can only be submitted in respect of a single company.

In this situation, the director will be required to select one company for the purposes of making EWSS claims for the period of the scheme.

Once a selection is made it cannot be changed during the term of the scheme.

And no claims for EWSS in respect of the same proprietary director should be submitted by the other companies.

Orla Fitzpatrick, head of Revenue’s medium enterprises division, added that eligible employers who want to claim EWSS need to register for the scheme in advance of making their submission through Revenue’s online service, ROS.

“Such employers must have an active PAYE/PRSI registration, a bank account linked to that registration and they must also have tax clearance,” Ms Fitzpatrick said.

In the last week over 16,000 employers have registered for the scheme.

In order to qualify for EWSS, firms need to demonstrate that their business will experience a 30pc turnover in customer orders or turnover between July 1 and December 31 this year. And that this disruption is caused by Covid-19.

EWSS is due to run until the end of March next year.

Revenue will publish a list of employers who availed of the EWSS at the end of January and the end of April next year.

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