The Revenue Commissioners explained how the workers who received the Pandemic Unemployment Payment (PUP) or the workers who subsidized the Temporary Wage Subsidy Scheme (TWSS) wages could be reimbursed.
Today, Revenue confirmed that workers have the opportunity to pay taxes later this year if they are interested.
Alternatively, they can allow revenue to reduce liabilities by reducing employee tax credits over a four-year period starting 2022.
During the 22nd week of TWSS, employers have not deducted income tax payments from their employees’ wages and will have to repay liabilities as a result.
PUP is treated as tax deductible income and is not taxed at source.
By the end of 2020, each employee who receives payments under the TWSS or PUP will be presented with an outline of their liabilities and a ‘preliminary end of the year statement’
According to the Revenue.E website, “This statement will provide a preliminary calculation of the income tax and USC position of employees for 2020, and will indicate whether their tax level is balanced, low wage or overpaid for the year.”
Once the initial statement is available, employees will have the final obligation by 2020 to “update their personal record, declare any additional income and claim additional tax credits such as qualifying for health expenses”.
This can be done online through the MyAccount portal on the Revenue website. Workers can repay everything they owe.
“Otherwise,” according to the latest information, “the employee will collect an interest-free liability income by reducing the tax credits by 4 years to alleviate any hardship. The reduction in tax credits will begin in January 2022. ”
Commenting on the new guidelines, Finance Minister Pascal Donoho said he was confident that any tax liability arising from emergency payments would be “moderate” for workers.
“But the Revenue Commissioner has the facility to deal with it within four years, so the burden on anyone who has benefited from the scheme is significantly reduced,” he said.
No news is bad news
Support the journal
Yours Contributions It will help us to continue giving you important stories
Support us now
The Employment Wages Subsidy Scheme (EWSS) replaced TWSS earlier this month. Under this new arrangement, employers will be required to deduct income tax from their employees’ wages as usual.
Donohue reminded employers this morning that the new scheme would be open if support for applications was needed.
He said that as of today, “approximately 36,746 employers” have registered for the new scheme and that 82 per cent of the businesses that were available to TWSS by the end of August are now benefiting from the EWSS.
“This is a very significant acquisition,” said Dublin Central TD. It will continue to support millions of workers from August to September this year.
The EWSS is expected to cost about $ 2.2 billion by the end of March 2021. Over $ 2.7 billion paid under its predecessor.
Prone to fits of apathy. Unable to type with boxing gloves on. Internet advocate. Avid travel enthusiast. Entrepreneur. Music expert.