You can pay up front or over a four-year period.
(Source: www.pixabay.com)Thousands of workers who received State wage subsidies during 2020 will be receive details of their tax bill next week.
Some employees who were on the Temporary Wage Subsidy Scheme and the Pandemic Unemployment Payment could face Revenue bills of more than €1,000.
People will be informed next week about how much they owe in tax, if they were on the Temporary Wage Subsidy Scheme or the PUP last year.
Workers weren't taxed at the time due to the emergency nature of the situation.
"The tax wasn't collected as normal through the payroll system" explains Norah Collender from Chartered Accountants Ireland.
"While the TWSS (Temporary Wage Subsidy Scheme) was paid to employers as a wage subsidy, the employee wasn't taxed in what they call 'real time'".
"So the tax liability on it didn't come out of their pay packet as the payment was being made to their employer".
The good news is that it doesn't have to be paid in full up front.
There is an option for it to be collected over a period of four years, from 2022, via a reduction of tax credits.
