Covid payment tax bills land
by Mehak Dugal
 
Over 630,000 people who’d received TWSS nor PUP payments got a tax bill last week because neither benefit was taxed at source.
Over 630,000 people who’d received TWSS nor PUP payments got a tax bill last week because neither benefit was taxed at source.

Tax bills issued this month to recipients of Covid-related benefits and wage subsidies don’t have to be paid until next year, according to the Revenue Commissioners.

 

Over 70% of employees who benefitted from the temporary Covid wage subsidy scheme (TWSS) received tax bills this month. But workers enrolled on the newer employment wage subsidy scheme (EWSS) won’t receive tax demands as the new system deducts tax through the PAYE system.

 

Revenue also said that 30% of pandemic unemployment payment (PUP) recipients had received tax bills. But almost half of PUP recipients are due a tax rebate.

 

Over 630,000 people who’d received TWSS or PUP payments got a tax bill last week because neither benefit was taxed at source.

 

TWSS rules required employers to pay staff a gross amount, with no tax or PRSI deductions. The scheme also allowed employers to top the payment up to the average net – rather than gross –weekly wage. This means the tax liability puts some staff at a loss compared to their average weekly gross pay.

 

Although TWSS isn’t liable to PRSI, its recipients have been deemed to have made their PRSI contributions. This means their social welfare entitlements and preserved.

 

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