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Businesses urged to look at supports before letting staff go

Businesses in the county have been reminded of the package of supports open to them.

East Galway TD Ciaran Cannon has said that employers should engage with Revenue and look at the Wage Subsidy Scheme before letting staff go.

A range of measures were announced last week to assist employers, employees and the self-employed who find themselves negatively impacted by COVID-19 and the consequences of the physical distancing guidelines.

For those who are now out of work due to the increased restrictions, the COVID-19 Pandemic Unemployment Payment is now being paid at the rate of €350 per week.

Minister Cannon says this will provide much needed immediate assistance and Minister Doherty’s Department is working hard to ensure that all who need this help receive it and get it as quickly as possible.

The Galway TD said: “The quickest and easiest way to apply is via mywelfare.ie. In respect of businesses, the Wage Subsidy Scheme has been described as a ‘win-win’ for businesses and workers and I would strongly encourage all businesses in Galway to engage with Revenue and seriously look at this scheme before they think about letting staff go.

“An eligible employer will be supported by up to 70% of an employee’s take home income up to a maximum weekly tax free payment of €410 (i.e. 70% of take home weekly income of €38,000 per annum).

“The scheme will provide support on incomes up to €76,000 or twice average earnings.  It will be capped at net €350 for incomes between €38,000 and €76,000,” he explained.

Employers are expected to make best efforts to maintain as close to 100% of normal income as possible for the subsidised period.

Revenue will provide further guidance on operation of the scheme and there will be severe penalties for any abuse of the scheme.

“Employers must self-declare to Revenue that they have experienced significant negative economic disruption due to Covid-19, with a minimum of 25% decline in turnover, and an inability to pay normal wages and other outgoings, in accordance with guidance to be issued by Revenue.

“This scheme is open to impacted employers in all sectors. This recognises the impact that Covid-19 is having across all parts of the economy.

“The employee must have been on the payroll in February 2020. Self-employed who qualify will be paid the Covid-19 Pandemic Unemployment Payment of €350 rather than through the Revenue scheme.

“They will be eligible on a similar basis as the Revenue scheme for employees. Revenue and Department of Employment Affairs & Social Protection will provide details to employers on how to apply”.

Michael Malone
Email me at editor@galwaydaily.com
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