Employer COVID-19 Refund Scheme

In a recent BHSM article click here, we outlined the details of the Pandemic Unemployment Payment announced by the Government on 15 March 2020 and to be made available to any employed or self-employed person who has lost work due to the coronavirus pandemic.

The Revenue Commissioners have now published further details on the Employer COVID-19 Refund Scheme (“the Scheme”). The Scheme will operate by giving employers the option to make the payment through their payroll system of €203 per week to employees who are temporarily laid off due to the ongoing pandemic. The amounts paid to employees under the Scheme are not subject to tax, USC or PRSI. In order to claim a refund, employers are required to notify the Revenue Commissioners of the payment and it is proposed that employers will be reimbursed the following day provided the submission has been received by the Revenue Commissioners before 2pm. It remains to be seen in practice if refund payments can be processed this quickly given the increased pressures imposed on the Government by the COVID-19 outbreak.

In order to avail of the Scheme, employers must:

• Have temporarily laid off the employee as a result of the impact of the COVID-19 pandemic on their business;
• Keep the employee on their payroll system and not cease the employee with Revenue; and
• Have made a payroll submission for the employee in the period from 1 February 2020 to 15 March 2020.

If an employee has already been laid off, the employee can apply directly to the Department of Employment Affairs and Social Protection (“DEASP”) for the payment.

It is important to note the following in relation to the operation of the Scheme:

• The employees must confirm to their employer that they have not, and will not, claim a payment from DEASP whilst their employer is availing of the Scheme;
• Employers should advise employees to make an online Jobseeker’s Benefit claim to ensure that they can access qualified dependant payments if required; and
• If an employee resumes employment with their employer, avails of other supports from DEASP or secures employment elsewhere, the employer should not include the employee in any further submissions under the Scheme.

Whilst it was originally proposed that the Scheme would only apply to employers who could not make a top-up payment of above €203 a week, on 19 March 2020 the Government announced that it would shortly be releasing details on a process for employers to top-up wages over the €203 payment whilst still qualifying to claim a refund. Further details in relation to this proposal are expected to be released the week commencing 23 March 2020.

How we can help

If you have any queries or concerns, or would like to discuss the above in further detail, please feel free to contact Richard Lee, Partner, BHSM on 01 440 8300 / rlee@bhsm.ie.

This article is for general information purposes.  Legal advice must be obtained for individual circumstances.  Whilst every effort has been made to ensure the accuracy of this article, no liability is accepted by the author for any inaccuracies.