Over 40,000 employers are availing of the Wage Subsidy Scheme.
(Source: www.pixabay.com)Hundreds of thousands of workers being paid through the Wage Subsidy Scheme will face tax bills at the end of the year.
The scheme enables employers impacted by COVID-19 to continue paying staff.
Over 40,000 employers are availing of the Wage Subsidy Scheme which refunds them 70% of their employees wage up to €410 per week. The money paid to employees in this way is subject to tax, but it's not being taxed right now.
Neither Revenue or employers are deducting tax on behalf of employees being paid in this way. This means workers whose employers have availed of the wage subsidy scheme are likely to owe Revenue money at the end of the tax year.
Senior Government Official Elizabeth Canavan is advising people to ensure they claim any tax credits they're entitled to but those tax credits are unlikely to completely cancel out what an individual will owe.
Employees will be able to choose to pay the bill in a lump sum, or spread it out over next year's pay packets.
