Temporary Wage Subsidy Scheme: Employer Compliance Check

Revenue have now commenced a review on compliance with the Temporary Wage Subsidy Scheme (‘TWSS’). This means that Revenue are contacting employers who have received TWSS payments.

What this means for you?

Revenue is contacting employers and asking for certain documentary evidence to establish that:

1. Scheme eligibility criteria is met
2. The correct amount of subsidy is being claimed and paid to employees
3. The subsidy amount is being correctly identified in employee payslips
4. The scheme is operating correctly

Generally, the information Revenue will ask for is:

1. An outline of the business and principal activities
2. Who runs the payroll
3. Summary of the impact of the COVID-19 restrictions on turnover of the business
4. Confirmation that payslips were issued to all employees for the relevant periods
5. Confirmation that the payslips displayed the scheme subsidy amount
6. Copies of payslips for certain employees and pay periods

There are only five  days to respond to the Revenue’s request. The key is to actively engage with Revenue within this deadline.

Revenue may cease payments to employers who do not co-operate with the checks and reply within the  five days, or who are not complying with conditions of the scheme.

Depending on the responses received, Revenue may look for more detailed information.

As part of this compliance check, Revenue may also check that the PAYE real time system is being operated correctly by the employer and if there are any outstanding tax returns.

Where the employer has outstanding returns, they will be unable to avail of the favourable Debt Warehousing arrangements in respect of PAYE and VAT liabilities.

Next steps

Revenue will contact you through the Revenue MyEnquiries service.  

On receipt of your letter from Revenue, you should contact your Grant Thornton adviser as soon as possible.