Hi, My wife's employer(who she no longer works for) used the government wage subsidy scheme during covid. Her take home pay never changed during this period. She's now got a tax bill for the subsidy which makes me think her employer must have underpaid her. Have I got this right? Surely he salary should have been up slightly while in receipt of the subsidy?
Tax liability for salary top up during covid
- Thread starter RichC
- Start date
You are correct, the Government required EWSS to be paid Net to employees with no Tax/USC deducted. If her employer kept her Net Pay the same she would have under paid tax. I have also seen employees paying their employer to work (Negative Gross), where the Net Pay was kept the same and the employee got a tax refund when the business reopened. Revenue eventually put everyone who received a COVID payment on Week 1, so it did not happen to those with employers reopening layer.
T McGibney
Registered User
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No, most likely you haven't.
The convoluted arrangements the State made to keep businesses open during the first Covid panic included no provision to deduct PAYE from the €350 a week TWSS subsidy. Employees were put on notice back then that they would be ultimately on the hook for tax on such sums.
We availed of TWSS for employees during covid and we and our employees had a tax bill at the end of it. As far as I recall employees could pay the full amount up front, or have decreased tax credits over the following 4 years. If your wife has a liability then I imagine it's correct, as it was advised at the time that people would end up owing tax.
Any use?
www.revenue.ie
Tax liability in your End of Year Review
When the Preliminary End of Year Statement is available, you will have an opportunity to update your personal record in myAccount.
www.revenue.ie