Revenue confirms 22,000 employers registered for Employment Wage Subsidy Scheme
As the new Employment Wage Subsidy Scheme goes live today, the Revenue Commissioners has confirmed that more than 22,100 employers have registered for the scheme.
To qualify for the scheme, employers must have tax clearance showing their taxes are in order.
The Revenue Commissioners says there have been more than 16,800 applications for tax clearance since 17 August, but note that 12,404 employers did not have a tax clearance certificate.
By the last week of the Temporary Wage Subsidy Scheme, which expired at midnight, 69,500 employers had registered for the scheme.
There were 45,300 employers were receiving payroll subsidy payments, but an estimated 20,900 employers had left the TWSS scheme.
The TWSS, which was launched last March, assisted many businesses to survive the Covid-19 pandemic.
Its replacement, the new Employment Wage Subsidy Scheme, will be welcomed, though the criteria is tighter.
The TWSS required a drop in turnover of at least 25% to qualify.
It paid up to €410 per week in subsidies per worker earning less than €76,000 a year, and delivered the actual money within 48 hours.
However, businesses qualifying for the new scheme must have a drop in turnover of at least 30%, and the top subsidy rate is significantly lower at €203.
Employers are concerned that there will be time-lag of up to six weeks to receive subsidy payments, which could cause cash flow pressures.
In addition, they will also have to prove they are tax compliant before they can avail of the Government aid.
It remains to be seen how many employers will ultimately transition to the new scheme, and how many jobs it will save.
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