TWSS Tax implications

Bagman

Registered User
Messages
15
Hi there,

Returned to work recently but wages partially paid by TWSS after temporary lay off.

Net pay approx the same as always but gross pay / salary much reduced, as GWSS not currently being taxed this seems ok in terms of my take home pay.

Is this normal? Everything I read about GWSS states it may be taxed at some stage and to keep this in mind by having some money kept aside.

Surely, if this is the case, reduced gross pay represents a pay cut? Should we be getting the same gross pay from the company as per pre Covid?

Any advice much appreciated.
 
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Marsha25

Frequent Poster
Messages
124
The TWSS is based on net pay so no, you shouldn't be getting the same gross pay as pre-Covid. Tax is not being deducted currently. Tax will be due on the payment at year end. Were you told that your employer was availing of the scheme before you went back to work? They should have let you know.
 

Bagman

Registered User
Messages
15
The TWSS is based on net pay so no, you shouldn't be getting the same gross pay as pre-Covid. Tax is not being deducted currently. Tax will be due on the payment at year end. Were you told that your employer was availing of the scheme before you went back to work? They should have let you know.
Hi there. Thanks for your post. No, we were not informed that we would be going on the wage subsidy scheme on return to work. The only time TWSS was mentioned was when they told us it wouldn't be suitable as an alternative to being laid off initially. No mention whatsoever of it on return to work apart from it showing up in our payslips.

On the issue of tax being deducted at a later stage, presumably by changes to future tax credits, how can it be argued that a reduction in gross pay is anything other than a pay cut, albeit one that doesnt take effect immediately?
 
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Bagman

Registered User
Messages
15
Hi,
An update on this is that my net pay is not in fact correct, it just seemed so as my pension contributions have been stopped and are being returned to me.

So as well as being put on TWSS without any communication, it also appears the company have reduced our salaries.

Am I correct in saying the employer gets a better TWSS contribution if salaries are lower? Is there a cut off salary over which they dont receive the full amount?
 
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