Covid 19 Employers Refund Scheme

This scheme has ended and has been replaced by the Temporary COVID-19 Wage Subsidy Scheme. See here for more information.

This Scheme allows employers to make a payment equivalent to the COVID-19 Unemployment payment (of €203) directly to workers who they have had to temporarily lay off and are therefore receiving no other wages payment from the employer.

Details of this scheme are continuing to be clarified. All the information below is correct at time of publication. See Operation of the COVID Employer Refund scheme on behalf of DEASP for the latest information.

 

Who the scheme applies to:

  • Employers who have temporarily laid off some or all staff as a result of the impact on their business of the COVID-19 (Coronavirus) pandemic
  • Employers that do not cease the employee(s) with Revenue
  • Employees for whom a payroll submission, with a PPSN, was made by the employer in the period from 1 February 2020 to 15 March 2020
  • Employers that are unable to make top-up payments over and above the emergency payment of €203 per week
  • Employees who are between 18-66 years old
  • Employees who have not ceased the employment with Revenue
  • Employees who are receiving no other wage payment from any employers. This includes wage top-ups, overtime, shift allowances, on-call payments so that the only additional payment on the payroll should be wages of €0.01.
  • Employees who are not yet in receipt of a payment from DEASP.
  • Employees who are non EU/EEA employees.
  • Employees over 18 who are in full time education but were also working.
  • Employees who are non-EU/EEA students over 18, who are in full time education but were also working.

Making an application for the Refund Scheme: 

Employers, or their agents, apply to Revenue to operate the scheme by carrying out the following steps:

  • Log on to Revenue MyEnquiries
  • Select the category “Employer COVID -19 Refund Scheme”.
  • Read the declaration and press the ‘Submit’ button
  • Log on to ROSand in ‘Manage bank accounts’, ‘Manage EFT’, ensure that the bank account details provided are correct

 

General Information:

  • This is a flat rate payment only. All workers should be paid the €203 rate, including those who may not have earned €203 per week normally.
  • While the payment of €203 is for temporarily laid off employees, other employees still working can be paid as normal.
  • Employers will be notified via the Revenue system when a refund is not being paid and should cease payments to the employee concerned from that point forward.
  • Any Income Tax and USC refunds that arise as a result of the application of tax credits and rate bands can be repaid by the employer and this amount will also be refunded to the employer.
  • The amounts paid to employees and notified to Revenue will then be transferred into the employer’s bank account by Revenue. Payroll submissions received will be sent to the bank on the day following submission for payment on the next banking day. A receiving bank may reflect this payment on the day received or a subsequent banking day.
  • The employer does not need to concern themselves with the PRSI status of employees. The employees’ eligibility for a jobseeker’s payment will be determined by the Department of Employment Affairs and Social Protection once the full jobseeker claim is determined and any social insurance issues will be dealt with between the department and the employee at that time.
  • Payments from employers to eligible employees from Monday 16 March 2020 will be refunded.
  • Payment via the Employer is a transitional arrangement. The employee is to be advised to make a Jobseeker’s Benefit claim via the MyWelfare.ie online portal. If that is granted, future payments will be made by DEASP – including any arrears for entitlement above the €203 and the employer will cease making payments.
  • Refunds are made for whole weeks only. There are no proportional payments for part weeks. E.g. if an employee is laid off on a Wednesday, they will receive no scheme payment for the part week and will be eligible to receive the scheme payment of €203 commencing the following week.
  • Submit cessation dates for employees who are no longer receiving this payment from the employers in the final payroll submission using the end date of the last refund scheme week as the cessation date.

Information for Employees:

  • The employee must confirm to the employer that they are not currently in receipt a payment from DEASP, nor have they applied for the COVID-19 Pandemic Unemployment Payment.
  • The employee must confirm that they are not working elsewhere.
  • Employees with dependents should make a Jobseeker’s Benefit claim via the MyWelfare.ie online portal (so that employees can access qualified dependant payments if appropriate).
  • If an employee resumes employment with the employer, or obtains other supports from DEASP, or secures employment elsewhere, the employer must be notified and will not include the employee’s details in future submissions i.e. stop making the payments of €203 to the employee.
  • Employees will be able to view the submissions made by employers like any other payment via the employees own MyAccount.
  • Deductions normally made via Payroll will not be made for employees being paid under this scheme.

Fortnightly or Monthly Paid Employees:

Where part of an employees pay period is covered by regular wages and part covered by the Covid Scheme, in line with Revenue guidance, we would recommended changing the pay frequency. Fortnightly or Monthly paid employees can be switched to weekly pay. The Covid Scheme is only available from 16th March. Monthly paid employees may have regular wages due for the first two weeks of the month. This can be process as weekly and then the Covid Scheme payment can be made for the remaining weeks. This will make the payment of the Covid payment more regular for employees as well as make the paying of outstanding regular wages more straight forward. It would also allow deductions to be made for employees and may suit employer cash flow better. The main consideration in switching the pay frequency is that the correct pay period is used for the first weekly payment. Simply check the employees tax card for the last ‘Week’ that a payment was made for before starting to make weekly payments starting in the next week.

Other Available Supports: 

Government supports for COVID-19 impacted businesses 

 

COVID-19 Pandemic Unemployment Payment: 

This payment is available to employees and self-employed people who are unemployed or who have their hours of work reduced during the COVID-19 (Coronavirus) pandemic.

 

Short Time Work Support: 

Short-time Work Support is a form of Jobseeker’s Benefit and is an income support payment if you have been temporarily placed on a shorter working week. 

 

Jobseeker’s Benefit: 

Jobseeker’s Benefit is a payment for people between 18 and 66 who become fully or partly unemployed and have paid enough pay-related social insurance (PRSI) contributions. 

 

Jobseeker’s Allowance: 

Jobseeker’s Allowance is a means-tested scheme. Whether you qualify depends on your income and whether you are habitually resident in Ireland (in other words, you live here and have close links to Ireland).