COVID-19 PQ Responses 5th May 2020 Prepared by Corporate Affairs, Department of Finance www.gov.ie/finance Topic – Temporary Wage Subsidy Scheme FIN/COVID/4.849/20 by Brid Smith T.D. To publish the name of all companies who availed of the wage subsidy scheme and the number of employees in each firm for which payments were made Section 28 of the Emergency Measures in the Public Interest (Covid-19) Act 2020 provides the legislative basis for the Temporary Wage Subsidy Scheme (TWSS). Subsection (8) of that section requires Revenue to publish on its website the names and addresses of all employers to whom a temporary wage subsidy has been paid. Revenue will publish a list of the names and addresses of qualifying employers who make submissions for subsidy refunds. The register of employer participants will be available on the Revenue website after the scheme has finished. It should also be noted that under employment law employers are obliged to issue detailed payslips to employees, while PAYE legislation requires employers to report their payroll to Revenue in real time as the payroll is run. Thus, employers are obliged to report the tax and PRSI deducted from their employees’ wages in real time. The TWSS law also requires employers to provide details of wage subsidy payments to employees on their payslips. I should also add that Revenue has made statistics on the TWSS available at: https://www.revenue.ie/en/corporate/information-about-revenue/statistics/number-of- taxpayers-and-returns/covid-19-wage-subsidy-scheme-statistics.aspx. The statistics cover the operation of the TWSS to 30 April. I am advised that Revenue is continuing to undertake further analysis of TWSS and will publish updated and expanded statistics on a regular basis. These updates will be published at the link noted above. Topic – Temporary Wage Subsidy Scheme FIN/COVID/4.064/20 by Fergus O'Dowd T.D. To ask the Minister for Finance if he will amend wage subsidy scheme and/or associated regulations in order for the below situations to be rectified and safeguard employers and employees under the Covid Wage Subsidy Scheme. I hope this finds you well, I really do appreciate you taking the time to look at this. I have a sent a similar letter to Paschal O’Donohoe with more specific information relating to the actual businesses and clients affected in my own case. I would really appreciate if you could add your voice to this issue, which affects businesses and will, in reality, close businesses across the country if not rectified. Personally, I own an accountancy practice in (detail supplied). I have 5 full time employed including myself. It’s a challenging time for everyone and businesses need all the support possible to survive. The issue is as below… Revenue are rejecting applications to the Temporary COVID-19 Wage Subsidy Scheme based on payroll returns for Jan20 or Feb20 being submitted late (even 1 day late). As an example, the payroll for Feb20 is due to be submitted to Revenue before the 15th of Mar. If this was submitted on the 16th of Mar Revenue are rejecting the application for the scheme. They are not accepting any appeals that I am aware of in relation to this. I know from dozens of colleagues this is an issue across the board. 1 I know the purpose of the scheme is keep people in employment and keep the link with employers. I believe Revenue’s approach, on this particular issue, is against the spirit of the scheme. Late submitted payroll can easily be verified through bank statements / payslips / employees’ records / previous months, etc. A lot of businesses have the same employees for years… and would receive thereabouts the same pay each month. I am requesting that this issue is raised directly with the minister. Please do this on behalf of small business across Ireland. I would really appreciate if you could let me know if there is any feedback. Many thanks for your help. Wishing you and your family well during this time. The Government’s priority in so far as the Temporary Wage Subsidy Scheme (TWSS) is concerned was, and is to ensure that all employers experiencing significant negative economic disruption from COVID-19 can register for and start to receive payment quickly. The overarching ambition of the scheme is to ensure the key relationship between employers and employees is maintained to the greatest extent possible so that businesses can restart operations quickly once the crisis has passed. The TWSS was legislated for in section 28 of the recently enacted Emergency Measures in the Public Interest (Covid-19) Act 2020. Of necessity, the underlying legislation and the scheme itself were developed very quickly, having regard to the urgent Government objective of getting much needed urgent assistance to employers and employees, where businesses have been seriously affected by the pandemic and the necessary restrictions introduced to fight the spread of the Covid-19 virus. It must be accepted that the TWSS simply cannot be adapted to meet the particular circumstances of individual employers or employees. In the context of the compelling need for immediate implementation of the TWSS, the scheme necessarily had to build on data returned to Revenue through its real-time PAYE system. The key criteria for eligibility for the scheme, as prescribed in the underlying law, are that – the business is suffering significant negative economic impact due to the pandemic, the employees were on the payroll at 29 February 2020, and the employer had fulfilled its PAYE reporting obligations for February 2020 by 15 March 2020. The latter two criteria were particularly designed to prevent abuse and exploitation of the scheme. Both I and Revenue have received numerous representations from and on behalf of employers who have not met their PAYE reporting obligations for February 2020. Many of the representations have indicated that employers had genuine reasons for missing the 15 March 2020 deadline, that those employers are generally compliant and that they are anxious to keep the link with their employees. Some employers have confirmed that they can produce records, bank statements, wage slips, etc., to show that they had the employees on payroll at 29 February 2020 and had paid them the relevant wages. From reviewing cases since the TWSS started, it has become apparent to Revenue that a number of employers have been unable to access the scheme because they failed the 15 March 2020 rule but had qualified under all other conditions of the scheme and are otherwise tax compliant. Given the overarching purpose and objective of the scheme, Revenue has now, agreed, under its care and management authority provisions, to allow such employers access the scheme provided: 2 the employees in respect of whom the wage subsidy is claimed were included on the employer’s payroll on 29 February 2020, the February 2020 payroll submissions were submitted to Revenue before 1 April 2020, and the payroll submissions for all previous months were submitted to Revenue before 15 March 2020. Where a business qualifies for the TWSS under the revised criteria, the wage subsidies under the scheme will be payable for eligible employees in respect of payroll submissions made on or after 24 April 2020, with a pay date on or after 24 April 2020, and cannot and will not be made retrospective. Further information is available at https://www.revenue.ie/en/corporate/communications/documents/twss-extended-deadline- feb2020-payroll-submissions.pdf Finally, any queries in relation to the operation of the scheme should be submitted via Revenue’s myEnquiries system. Topic – Mortgages FIN/COVID/4.792/20 by Pearse Doherty T.D. To ask the Minister for Finance what correspondence has the Minister had with AIB regarding the application of additional interest on mortgage loans whereby the mortgage-holder has availed of a three month mortgage break as a result of COVID-19, and if he will make a statement on the matter; On 18 March 2020, I met with the five CEOs of the retail banks operating in Ireland and with Banking and Payments Federation Ireland (BPFI) to discuss the proposed actions by the banks. The measures announced utilise the banks’ own resources and Central Bank of Ireland monetary and regulatory policy actions to assist customers. My Department has also and continues to liaise with the Central Bank of Ireland to advance ongoing work that is taking place to assist customers who are impacted by COVID-19. Discussions with Credit Service Firms and with those non–bank lenders who provide mortgages have also taken place with the Banking and Payments Federation of Ireland. Topic – Mortgages FIN/COVID/4.561/20 by Roderic O’Gorman T.D. To ask the Minister for Finance if he is aware whether the pillar banks are undertaking a major review of their mortgage loanbook and could this have an impact on homeowners holding mortgages following the end of the three month mortgage holiday and will he make a statement on the matter. The Irish economic landscape, in common with elsewhere, has changed considerably in recent months. To chart our way out of this unprecedented situation as country, we have developed an economic recovery plan that lays out the necessary measures to restore full employment and outline the steps needed to get our country back on track in the period ahead. This plan is based on detailed analysis by officials in every government department and across the system. 3 This process is replicated right across our economy, as businesses big and small review every aspect of their operations, seeking to chart their way safely out of this crisis.