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Revenue will facilitate employers who wish to pay employees’ 2020 tax liabilities. This applies to Income Tax (IT) and Universal Social Charge (USC) which arise due to the TWSS.

Employers must engage directly with employees and agree the method to pay the liability involved.

In mid-January 2021, Revenue will make a Preliminary End of Year Statement for 2020 available for each employee. This will assist in determining the amount of IT and USC due.

All employees, can view their Preliminary End of Year Statement in their MyAccount. Each employee will be able to see if there is an underpayment of IT or USC arising due to the TWSS.

How to pay employees’ tax liabilities

To pay employees’ tax liabilities you can:

  • provide funds to each employee to meet their IT and USC liabilities, as shown in their Preliminary End of Year Statement. Each employee must then pay their liability via RevPay.


  • amend the last payroll submission of 2020. You must add additional ‘IT paid’ and ‘USC paid’ that equals the liability shown on the Preliminary End of Year Statement. This must be done for each employee concerned.

The employee’s Preliminary End of Year Statement will be recalculated subsequently. This will show the additional IT and USC liabilities paid directly by the employer.

For both options above, each employee must complete their 2020 Income Tax Return.

Documentation and records

Employers must retain copies of any documentation and records covering:

  • engagement with employees about these arrangements
  • agreement to undertake these payment arrangements.

Revenue will not apply Benefit In Kind rules to these payments employers make on behalf of employees.

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