TWSS Continuing eligibility

C

cremeegg

Registered User
Messages
4,152
An employer qualifies for the scheme where their income fell 25% or more in Q2.

How long does the employer continue to qualify, and where can this info be found.

If an employer is now trading again after being closed how many weeks of trading at normal levels can elapse before the employer ceases to be eligible.

Say a restaurant with no income for April May June, trading at normal levels since the reopening.

Any link to this info would be appreciated.


[Mods, I know I have posted this in two places, but I think this is the better forum for it]
 
I don't think it's very clear based on below.

The proofs mentioned below are intended to be illustrative rather than exhaustive and Revenue is open to considering other relevant evidence that reasonably demonstrates eligibility for the COVID19 Temporary Wage Subsidy Scheme and, as other examples are brought to our attention, we will update our Guidelines accordingly.
• If for some reason, the decline in turnover was less than 25%, the business should retain documentation supporting its rationale of believing that it would suffer such a decline.
• Copies of documentation submitted to a financial institution as part of the negotiation of relief measures with the financial institution.
• Copies of notifications or communications to employees or Trade Unions or staff representative bodies of salary/wage cuts implemented as a direct result of the COVID-19 pandemic.
• Copies of documentation that shows that any cash reserves in the business are required to fund debt that is equal or greater than the reserve amount.
• Evidence of reliance on the Government Credit Guarantee Scheme or overdraft facilities or other borrowings for capital purposes.
• In the case of start-up businesses, for example, evidence of a decline in investment by at least 25% arising from the COVID-19 crisis.

An employer that has been hit by a significant decline in business but has strong cash reserves, which are not required to fund debt, will still qualify for the Scheme but the Government would expect the employer to continue to pay a significant proportion of the employees’ wages.
 
While the above has grey areas, a business that was closed during the lock down would obviously qualify initially, but when, if ever does it cease to qualify.

One weeks normal trading, one quarters normal trading.

As far as I can see there is no guidance on this.
 
The above were all reasons that we did not used the TWSS scheme intially. The guidance is not very clear on if you qualify or how you qualify. In our case we had cash reserves which were needed for cashflow purposes to get a new job off the ground. If we had paid people throughout (even allowing for the TWSS scheme), we would have depleted our cash reserves and been unable to continue working. In our case we signed everyone off to PUP and got them back to work on normal full pay asap so we haven't used the TWSS scheme at all. It seems to be that it is more geared towards the businesses that had to close completely and where the employees would be lower paid.
 
The eligibility criteria to continue participating within the scheme or to join the scheme after quarter 2 remains unchanged. The business must have suffered a significant negative economic impact as a result of the Covid-19 pandemic. The indicators of this are a minimum of a 25% reduction in turnover, customer orders or any other ‘reasonable basis’ for Quarter 2 2020.

See paragraph 2.4 - https://www.revenue.ie/en/employing-people/documents/pmod-topics/guidance-on-operation-of-twss.pdf

E-brief No 117/20 says the same thing

Revenue eBrief No. 117/20

Temporary Wage Subsidy Scheme - Extension of the Temporary Wage Subsidy Scheme to August 2020 and update on a range of developments under the Scheme
www.revenue.ie www.revenue.ie

Revenue Press Release of 23-Jun also says the same thing

Revenue provide important information on extension of TWSS, including employer compliance programme to ensure correct operation of scheme

Revenue provide important information on extension of TWSS, including employer compliance programme to ensure correct operation of scheme
www.revenue.ie www.revenue.ie
 
See Q5 - https://www.charteredaccountants.ie/News/revenue-s-answers-to-member-queries-on-the-twss

Question 5: An employer qualifies for the TWSS as turnover fell by 25% in Q2. Looking ahead to Q3, turnover will recover so the 25% test will not be fulfilled. However, the employer is still in financial difficulty due to the cumulative impact of the drop in turnover in Q2. Can the employer continue to claim the TWSS in Q3 (July & Aug)? If yes, what information should be in place to support the claim?

Revenue’s response: The eligibility criteria turnover test is remaining the same i.e. a 25% drop between 14 March and 30 June. So quarter 3 turnover is not a measure. However, where cash reserves recover to levels above that required to service debt, we would expect to see a significant contribution toward employees wages as set out in the guidelines on employer eligibility.
 
What happens if a company experiences a reduction in turnover of 25% in Q3?
Can they apply for the Temporary Wage Subsidy Scheme?
 
Question; A company serves a few different sectors, with employees supporting those specific sectors. Overall is still doing okay, down 10% in total, but business in one sector had collapsed. Can this support be applied for in order to retain those staff?
 
Purple said:
What happens if a company experiences a reduction in turnover of 25% in Q3?
Can they apply for the Temporary Wage Subsidy Scheme?
Click to expand...
As I understand it the test relates to Q2 only. Thats for the TWSS and new scheme the EWSS is coming soon.
 
Purple said:
Question; A company serves a few different sectors, with employees supporting those specific sectors. Overall is still doing okay, down 10% in total, but business in one sector had collapsed. Can this support be applied for in order to retain those staff?
Click to expand...

I believe that a company in this position can apply for the TWSS, for those employees in the affected sector.
 
Purple said:
Have you any link etc to back that up?
I hope you are right!
Click to expand...

The 25% reduction in turnover or customer orders may be applied at the level of the company or, if a company is formally structured into individual Business Divisions, at the level of the individual Business Division. In such a case, each of the Business Divisions of such a company, which has suffered a significant decline in turnover or customer orders as a result of the COVID-19 Pandemic, may be eligible for the subsidy.

From here

 
cremeegg said:
The 25% reduction in turnover or customer orders may be applied at the level of the company or, if a company is formally structured into individual Business Divisions, at the level of the individual Business Division. In such a case, each of the Business Divisions of such a company, which has suffered a significant decline in turnover or customer orders as a result of the COVID-19 Pandemic, may be eligible for the subsidy.

From here

Click to expand...
Thanks, in this case it’s not a formal division.
 
You must log in or register to reply here.
Back
Top