Employment Wage Subsidy Scheme (EWSS) update for Q3, & Q4, 2021
We already knew that the EWSS will be extended until 31 December 2021. For Q3, 2021 there will be some modification to widen the eligibility criteria and maintain the current rates of wage subsidy payments. The reduced rate of Employer’s PRSI (0.5%) will continue to apply for those employees for whom a subsidy is being claimed.
The reference period for the 30% reduction in turnover or customer orders, will alter for an employer seeking to claim the subsidy in Q 3, 2021. The assessment will require a reduction over a 12-month period (instead of the current 6-month review period). Therefore, an employer must compare turnover/customer orders for the period from 1 January to 31 December 2021 against 1 January to 31 December 2019 for the 30% reduction test.
For Q4, the qualifying criteria for claiming the subsidy will not be determined until August/September. Government has indicated that it is considering a required employer contribution towards the employee wages.