Supports will keep businesses open - Chamber
Sligo Chamber has welcomed the announcement of Government measures that it says will help to keep many businesses in the county afloat.
Businesses can apply for the Government’s Temporary Wage Subsidy Scheme (TWSS) which will provide subsidised wages and salaries of 70% for the next 12 weeks. There are other enhanced supports now available for people who have already lost their jobs.
Commenting, Sligo Chamber CEO Aidan Doyle said: “We understand that this is first and foremost a health emergency and we back any moves that keep all of us, our families, our workers and our community, safe.
“The further social distancing measures announced by the Government and HSE are sensible and will be fully supported by the Sligo business community which is showing great forbearance in managing the crisis.
“The new steps economic measures announced go towards keeping vulnerable firms alive, keeping their employees engaged with them and protecting the income of individuals.”
Mr Doyle has urged businesses to take advice about which measure best applies to them. He added: “It’s important that businesses consult their own accountant or HR/Finance teams to get a clear picture of eligibility and make their own decisions in which scheme applies to them., as some of the details are done on a self-declaration basis.|
“We support the raft of new measures because it simply makes sense to enable the economy to be able to bounce back at the other end of the Covid-19 crisis.
“The Chamber wholeheartedly welcomes the fact that financial help is being made available to the self-employed who are experiencing a significant loss of income. At this time, social solidarity is very important.”
The government has also made clear that other self-employed business people will be eligible for the Covid-19 Pandemic Unemployment Payment of €350 directly from the Department of Employment Affairs and Social Protection. COVID-19: Temporary Wage Subsidy Scheme
The subsidy is to allow employers who have suffered a sudden impact from COVID-19 to continue to pay their employees. Under the scheme, an employer will receive a subsidy of 70% in respect of an employee’s net wage, up to €38,000 per annum. The scheme is intended to continue for a 12-week period and details will be provided at Revnue.ie.
The TWSS will give employers a refund of 70% of the amount of normal net pay to an employee up to a maximum of €410 per week. In calculating the amount of “normal” weekly net pay, the Revenue will simply take January and February 2020 payroll and divide by 9 to arrive at a weekly amount (projected annual salary will be this number multiplied by 52).
While employers are urged to top up the payment to employees, there is no obligation to do so. Top-ups will be subject to a minimal rate of PRSI (~0.5%). The subsidy plus top-up cannot exceed an employee’s previous normal wages. The scheme will operate for 3 months
Other key points:
• Proprietary directors (i.e. directors who own a material stake in a company but pay themselves a salary from the company) are eligible
• Employers are expected to make “best efforts” to top up wages/salaries if possible
• A “sudden impact” is defined as being able to demonstrate that you have lost at least 25% of your trade
• The scheme will be administered by the Revenue Commissioners through THE PAYE SETUP
• The scheme is a self-declaration scheme and the evaluation process will be quick
• In the interim between now and the 20 th of April, an interim scheme will simply provide the subsidy at a maximum rate of €410
• The scheme will support both people who are still working and people who are effectively laid-off or on full or part-time working
COVID-19: Pandemic Unemployment Payment - Increase There is an increase in the COVID-19 Pandemic Unemployment Payment from €203 to €350 per week. This applies to both employees and the self-employed; It is for those who have lost their job or been forced to cease trading due to COVID-19; It is in place for duration of the crisis
Illness Benefit for COVID-19 Absences - Increase
An increase in the Illness Benefit for COVID-19 Absences, also to €350 per week This is for those who are sick or self-isolating on instruction of a doctor due to COVID-19; You must be confined at home or in a medical facility to benefit; paid for max 12 weeks