Paramount to managing change effectively and in particular managing the unknown, is that Employers and leaders alike must deal specifically with the facts in front of them in order to guide all stakeholders in these times of change. Consistent communications is integral to the continuity of business and to leading in these challenging times.
Padraig McKeon, Non-Executive Director at Adare Human Resource Management, shares some invaluable insights into the principles of effective communication in times of crisis.
PRACTICAL CONSIDERATIONS OF THE WAGE SUBSIDY SCHEME
Most Organisations are in the midst of considering difficult questions in order to effectively manage the changes necessitated by the impact of Covid-19 on their businesses. With the enactment of the Emergency Measures in the Public Interest (Covid-19) Act, 2020 the Government is seeking to support these Organisations in a practical way owing to the significant challenges that have presented of late. Adare Human Resource Management have sought to address some updated questions relating to the Covid-19 Wage Subsidy Scheme in order to support Organisations dealing with the practicalities of these changes.
UPDATED COVID-19 WAGE SUBSIDY SCHEME Q&A – REVENUE HAVE PROVIDE FURTHER DETAIL ON THE WAGE SUBSIDY SCHEME AS OF APRIL 1, 2020
CAN AN EMPLOYER DEDUCT A PENSION CONTRIBUTION FROM A TEMPORARY WAGE SUBSIDY PAYMENT TO AN EMPLOYEE?
No. Under section 28(5)(d) of the [Covid-19] Act, the Employer must pay to the Employee “an additional amount equivalent to the wage subsidy”, which means the subsidy amount must be paid to the Employee in full. The purpose of the subsidy is to ensure the Employer/Employee relationship is maintained and to ensure a minimum amount is paid to employees during a time of national and worldwide emergency.
CAN AN EMPLOYER MOVE EMPLOYEES FROM ONE REGISTRATION NUMBER TO ANOTHER AND STILL AVAIL OF THE SCHEME?
To be eligible to be included in the scheme, Employees must be on the same PAYE(Emp) tax registration number that was used to submit their January and February payroll.
SUBSIDY RECONCILIATION & REPAYMENT TO REVENUE: WHAT HAPPENS IF AN EMPLOYER RECEIVES TOO MUCH MONEY FROM REVENUE, HOW IS IT RETURNED?
Details of both the reconciliation process and the process for Employers to follow when returning excess Wage Subsidy Scheme funds to Revenue will be published soon. In the interim, to assist in their future reconciliation, Employers should continue to retain records of subsidy payments made to Employees, records of subsidy refunds and tax refunds received from Revenue and hold any excess of the subsidy payments received for offset against future subsidy payments or for future repayment to Revenue.
WILL EMPLOYERS BE ENTITLED TO THE FULL SUBSIDY AMOUNT UNDER THE TRANSITIONAL ARRANGEMENTS?
During the transitional phase, Employers will receive €410 subsidy per week for each Employee that they have made a PRSI Class J9 submission for, regardless of the amount of the subsidy actually paid to the Employee.
In many cases this amount will exceed the subsidy that the Employee is entitled to receive for that week and in these cases, the Employer is obliged to hold the excess of the subsidy payment received over the amount of subsidy actually to each Employee. In the operational phase of the scheme, this excess amount will be taken into account by Revenue when paying future subsidy payments to the Employer or will be repaid directly to Revenue.
Disclaimer - The information in this section is provided to assist Employers on the implementation of the Government Schemes and must be read in the context of the scheme details from the Revenue website, Department of Employment Affairs and Social Protection www.gov.ie website and should not be interpreted as a legal definition of any of the information provided. The information is changing constantly, and any information provided is correct of April 1, 2020 and is per information on the Revenue website as of that date.
FOR FURTHER INFORMATION OR ADVICE, PLEASE CONTACT YOUR DESIGNATED EXPERIENCED HR CLIENT MANAGER IN ADARE HUMAN RESOURCE MANAGEMENT OR INFO@ADAREHRM.IE .