EWSS – 2 Possible Ways to Re-qualify
Revenue issued 2 separate sets of guidance notes just before Christmas to assist businesses who had previously qualified for EWSS but who then found themselves unable to qualify. These are outlined below.
- Guidelines covering re-entry of certain employers into the EWSS from 1 January 2022
This re-qualification approach will apply for businesses where:
- their trade existed at 31 December 2021;
- they previously correctly availed of EWSS at any stage between 1 September 2020 and 31 December 2021;
- they do not qualify under the current scheme as they do not expect a 30% reduction in turnover or customer orders value between the calendar years 2019 and 2021;
- however, their business is expected to experience a 30% reduction in turnover or customer orders value in the period from 1 December 2021 to 31 January 2022; and
- this disruption to normal operations is caused by COVID-19.
This reduction in turnover or customer orders is relative to:
- the period 1 December 2019 to 31 January 2020 compared with the period 1 December 2021 to 31 January 2022 where the business was in existence prior to 1 May 2019; or
- where the business commenced trading in the period from 1 May 2019 and 31 December 2021, the average monthly actual turnover or orders value from August to November 2021 compared with the average actual monthly turnover or orders value for December 2021 and projected turnover or orders value January 2022.
Revenue have issued guidance notes on this matter, which can be found here https://www.revenue.ie/en/employing-people/documents/ewss/ewss-guidelines-re-enter.pdf
Steps to take to re-enter the scheme
Once an employer has determined they are eligible to re-enter the scheme, the template at Appendix I of the guidance notes for businesses in operation on 30 April 2019 or Appendix II for businesses which commenced operation on or after 1 May 2019, should be completed and submitted to Revenue by 15 January 2022 through MyEnquiries, selecting ‘Employer’s PAYE’ and then ‘Employer’s PAYE General Enquiry’. Revenue will then undertake a review of the submission and ensure the business, if eligible, is registered. A notification will issue through MyEnquiries to the employer advising of the outcome of the re-registration request. If re-registered, this with be effective from 1 January 2022.
Employers should ensure a claim is submitted in respect of all eligible employees for pay dates between 1 January and 30 April 2022.
If the payroll has been submitted prior to reregistration without including an EWSS claim, this should be amended to include the EWSS claim after receipt of the successful re-registration confirmation.
There is no initial requirement for these employers to complete Eligibility Review Forms (ERF).
Review on 31 January 2022
Employers will be required to undertake an eligibility review on 31 January 2022 to ensure actual January 2022 results are not at a level whereby the employer does not qualify for re-entry into the scheme. In such instances, employers should deregister through “Manage Tax Registration” on ROS with effect from the following day (that being the 1 February 2022) and cease claiming the subsidy immediately. This means that an employer must not select “Employment Wage Subsidy Scheme” from the “Other Payments” section in their payroll software or on the ROS manual payroll reporting facility.
If an employer becomes aware prior to the end of January 2022 that they will no longer meet the eligibility criteria (e.g., unexpected donation or grant received at the start of a month), they should de-register immediately and cease to claim subsidies.
- Guidelines covering re-qualification of certain employers into the EWSS from 1 December 2021
We are aware that certain employers became ineligible for EWSS from 1 December 2021 on foot of the eligibility review undertaken on 30 November 2021. However, as a result of public health restrictions introduced from 20 December 2021, the December projections prepared on 30 November may now be overstated. Because of this, Revenue will facilitate amendment of the December projections prepared on 30 November for these employers, if they are eligible based on the revised December projections prepared, ie, after taking the 20 December 2021 restrictions into account.
Employers who require an amendment to their December projections included in their November ERF (due 15 December) should contact Revenue through MyEnquiries (selecting “Employers’ PAYE” and then “Employer’s PAYE General Enquiry”) before 15 January 2022 requesting that the ERF is amended to include the revised December projections which should be provided to Revenue.
Where the November ERF (due 15 December) has not yet been filed, this should be submitted including the revised projections for December 2021. Any ERFs outstanding for earlier months should be filed utilising the original December projections.
If re-registration is being sought, you should contact Revenue through MyEnquiries (selecting “Employers’ PAYE” and then “Employer’s PAYE General Enquiry”).
When employers again find themselves eligible but have not claimed EWSS in respect of pay dates after 1 December 2021, please follow the above steps to ensure you are registered for EWSS and have an updated November ERF on file; you should then amend the December payroll submissions to include the EWSS claim.
Any December payroll submissions already filed which included an EWSS claim will be processed once the November ERF is amended or filed.
Notwithstanding the above, eligible employers are further reminded that they are required to file the December ERF record which is due on 15 January 2022.
If you have any queries, please email or phone your usual PSC contact.