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EWSS Changes Announced following Budget Speech

PSC Accountants & AdvisorsCovid EWSS Changes Announced following Budget Speech
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EWSS Changes Announced following Budget Speech

Further guidelines issued from Revenue on 1st November 2021 regarding the EWSS. These guidelines reflect the changes announced by Minister Donohoe in his Budget speech last month.

 

The changes are:

 

  • The EWSS will continue to run until 30th April 2022, for qualifying businesses.
  • The low rate of PRSI (J9) will continue to operate until 28th February 2022.
  • After 28th February 2022, normal PRSI rates (generally Class A or S) will recommence. This will lead to large increase in PRSI payments.
  • There will a necessity to continue to have a Tax Clearance Certificate until 30th April 2022.

 

Eligibility Criteria

 

Businesses will continue to compare turnover in the year ended 31st December 2021 with turnover in the year ended 31st December 2019, to determine if they have satisfied the “30% reduction in turnover” test.

 

This comparative period will still apply, for all pay dates up to 30th April 2022.

 

 

Rates

 

A table of rates is enclosed.

 

Rate of EWSS Subsidy

The rate of weekly subsidy the employer will receive per paid eligible employee from 20th October 2020 to 30th November 2021 is as follows:

 

Employee Gross Weekly Wage Subsidy Payable
Less than €151.50 Nil
From €151.50 to €202.99 €203
From €203 to €299.99 €250
From €300 to €399.99 €300
From €400 to €1,462 €350
More than €1,462 Nil

 

 

 

 

The rate of weekly subsidy the employer will receive per paid eligible employee from 1st December 2021 to 28th February 2022 is as follows:

 

Employee Gross Weekly Wage Subsidy Payable
Less than €151.50 Nil
From €151.50 to €202.99 €151.50
From €203 to €1,462 €203
More than €1,462 Nil

 

 

The rate of weekly subsidy the employer will receive per paid eligible employee from 1st March to 30th April 2022 is as follows:

 

Employee Gross Weekly Wage Subsidy Payment
Less than €151.50 Nil
From €151.50 to €1,462 €100
More than €1,462 Nil