According to the latest figures published by Revenue this week, 56% of employers who availed of the Temporary Wage Subsidy Scheme were overpaid under the scheme, and owe a total of €224m to the Revenue Commissioners by the end of June.
Figures show 66,500 employers have so far availed of TWSS support payments of €2.9bn in respect of 664,000 employees since its introduction on March 26 last year. For the first six weeks of the scheme, employers were paid a maximum of €410 in respect of each eligible employee. However, from May 4, the subsidy was based on each eligible employee’s average net weekly pay for January and February 2020.
The scheme was designed to assist employers and employees impacted by the Covid-19 virus, and to encourage companies to keep their workers on the payroll. On signing up for the TWSS, employers had to issue a declaration that they would repay any excess subsidy payments arising – with a reconciliation of subsidy payments made taking place when the scheme ended.
Head of Revenue’s Accountant General’s and Strategic Planning Division, Brian Boyle, said “Most employers will receive a notification to their ROS inbox advising them that their TWSS reconciliation information is available. Recognising the demands and challenges faced by employers and their tax agents in this current economic environment the reconciliation information is available to review and finalise until 30 June 2021,”
Of the €224m in reimbursements due from overpayments to employers, around €90m has already been repaid to the Revenue.
41% of accounts were correctly balanced, meaning neither a reimbursement nor an underpayment is due.
The remaining 3% of employers underclaimed and are due additional payments worth around €1.4m. This money will be paid into their accounts as soon as they accept their reconciliation calculation.