Revenue has previously confirmed that it is facilitating employers who wish to pay the 2020 income tax and Universal Social Charge (USC) liabilities of their employees arising from the Temporary Wages Subsidy Scheme (TWSS).
In the event that an employer should wish to pay theses liabilities on behalf of their employees, on an exceptional, once-off basis and subject to certain conditions, Revenue will not apply the Benefit-in-Kind (BIK) rules that would usually apply where employers make payments of this nature on behalf of their employees.
Employers should ensure they are aware of the relevant pages on the Revenue website which have been updated to provide clarification in relation to the concessional BIK treatment and TWSS debts:
Revenue Clarifications Are As Follows:
- To facilitate employers who wish to make good their employees' liabilities and ensure they have the fullest information available following the TWSS Reconciliation process,the concessional treatment is extended to run until end of September 2021.
- The concession also applies where an employer pays the tax and USC liabilities of an employee who is a self-assessed taxpayer or, in joint assessed cases, if the employee's spouse is self-assessed.
- The concession also applies where an employer pays the tax and USC liabilities of a proprietary director(s) in the company, provided that the employer pays the TWSS related liabilities of all employees in the company.
Further information regarding offsets of direct temporary wage subsidy payments is also provided.
Should you require further clarification relating to above subject matter or indeed any matter relating to your business please do not hesitate to contact DBASS <01 849 88 00> or firstname.lastname@example.org where a member of our team will be on hand to assist you.