At HLB Ryan we are endeavouring to provide our clients with advice on the tools and resources available to them to deal with the current Covid 19 crisis.

The situation is continually evolving and further guidance and advice are being issued from various Government departments to assist businesses in coping with the challenges that the public health crisis imposes on business.

The Department of Business, Enterprise and Innovation has published a page on its website that lists a number of supports available to the businesses to help deal with the Covid 19 crisis.

https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/Government-supports-to-COVID-19-impacted-businesses.html

On 24 March 2020, the Government announced new measures to provide financial support to Irish workers affected by the Covid-19 crisis. As part of these measures, Revenue will operate a Temporary COVID-19 Wage Subsidy Scheme. The scheme, enables employees, whose employers are affected by the pandemic, to receive significant supports directly from their employer.

The main features of the scheme are;

  • Subsidy paid to the employer of 70% of net wages (subject to limits)

  • Employer retains employee on the payroll. Employers encouraged to top up subsidy

  • No income tax or USC shall be applied initially to the subsidy (may be applied later in the year)

  • No Employee PRSI on subsidy or top-up

  • Employers PRSI on the top-up of 0.5%

To qualify employers must;

  • Retain employees on payroll

  • Have 25% or more drop in turnover

  • Be affected by Covid 19 crisis

  • Be unable to pay normal wages and normal outgoings fully.

 Guidelines from Revenue

If an employer cannot show that is unable to pay normal wages and normal outgoings fully i.e. because the business has cash reserves, then it may not qualify for this subsidy scheme.

In the alternative employers can go down the route of temporary short-time working arrangements.

  • The employer must reduce employee hours by half or more.

  • The reduction must be under terms of the employment contract or with the written consent of the employee

  • Notify employee using form RP9

  • The employee makes an application for Jobseeker Benefit/Allowance from the Department of Employment Affairs and Social Protection (DEASP) using Form UB1

  • Employer completes Form UB14 outlining short time working details and submits to DEASP

Downloads:

Form UB1

Form UB14

Covid-19 Supports for Business

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A world-wide network of independent accounting firms and business advisers.

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Tel: +353 1 6311200 

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