The Temporary Wage Subsidy Scheme payments are subject to Income Tax (IT) and Universal Social Charge (USC). Pandemic Unemployment Payments are subject to Income Tax.
- Employees will be able to view their tax
position by obtaining a Preliminary End of Year Statement on their MyAccount
- To finalise their tax position, claim
additional credits and reliefs and declare additional incomes employees must
complete a 2020 Income Tax Return.
- From mid- January, Revenue will generate a
Statement of Liability for the tax year 2020. This may be balances, have an
overpayment or an underpayment of tax.
- Employees may pay underpayment of taxes owing
full or partial, through RevPay or
will arrange to collect the underpayment of tax by reducing their tax credits
over a four-year period commencing 2022.
Revenue will facilitate employers who wish to pay the
2020 Income Tax USC liabilities of their employees were they arise due to the
Temporary Wage Subsidy Scheme (TWSS).