Understanding the Government supports for employers impacted by Covid-19

Understanding the Government supports for employers impacted by Covid-19

As we continue to tackle the challenges of Covid-19 the Government has announced a range of supports for employers and employees who are experiencing disruption as a result of the crisis.

The charity sector, like so many other sectors, is facing an unprecedented challenge at this time to ensure our survival and our ability to provide services to those who rely on them the most.

Charities Institute Ireland commends the Government for acting quickly in setting up supports for all citizens impacted by this crisis.

As with so many things in this current climate things are very fluid. We are working closely with Revenue to provide clarity on these matters to our members. We are also in regular contact with Government and Departmental officials briefing them on the impact of this crisis on the sector and the supports needed to deal with it.

We will be working to ensure our members and the wider sector are kept as up to date as possible as things continue to progress.We have received many questions from members on how the scheme will apply specifically to their circumstances and how they can provide evidence of lost income.

Below is a brief summary of the most pertinent guidelines from Revenue in relation to charities as well an outline of each of the three temporary schemes in place relevant to the sector.

Summary

• The Temporary COVID-19 Wage Subsidy Scheme is available for all employers who meet the qualifications for the scheme - including community and voluntary organisations and charities. An FAQ on the scheme can be found here.
• To demonstrate that your charity has been negatively affected Revenue has published a document setting this out.
• If charities have any specific queries regarding their situation, they should contact Revenue through the MyEnquiries facility.
• An employer that has been hit by a significant decline in business but has strong cash reserves, that are not required to fund debt, will still qualify for the Scheme but the Government would expect the employer to continue to pay a significant proportion of the employees’ wages.

COVID-19 Pandemic Unemployment Payment

All employees, and self-employed people, who have lost employment due to the pandemic are eligible for a payment of €350 per week. The payment will be in place for 12-weeks.

You can apply here.

Illness Benefit Due to COVID-19 Absences

Should an employee be told to self-isolate by a Doctor, or diagnosed with COVID-19, they are eligible to apply for an enhanced Illness Benefit payment of €350 per week. 

To be eligible for this payment a person must be confined to their home or a medical facility.

This payment is €350 per week and will be paid for a maximum of 2-weeks where a person is self-isolating, and for a maximum of 10-weeks if a person has been diagnosed with COVID-19.

You can apply for this benefit here.

Temporary COVID-19 Wage Subsidy Scheme

The Temporary COVID-19 Wage Subsidy Scheme is available for all employers who meet the qualifications for the scheme - including community and voluntary organisations and charities.

This scheme is expected to last for 12 weeks and is available to employers who keep employees on payroll during the pandemic. The aim is to allow employers to retain links with their employees for when business picks up after the crisis. 

Main points:

• All employers are eligible for this scheme including charities and not for profits.
• Although the scheme encourages organisations to maintain income as close to 100% as possible – this does not refer to organizational income but instead relates to employee net pay and any top ups from employers.
• Any organisation which is experiencing business interruption, can apply under the scheme for help to retain staff during the next 12-week period. 

In order to qualify for the scheme, employers must be:

• Experiencing significant negative economic disruption due to COVID-19;
• Unable to pay normal wages and normal outgoings fully;
• Able to demonstrate a minimum of a 25% decline in turnover;
• Retaining their employees on the payroll.

You can see more on this here.

Guidance from Revenue

• To demonstrate that your charity has been negatively affected Revenue has published a document setting this out.
• The guidance specifically states that having cash reserves will not be interpreted as an ability to pay wages as long as it can be demonstrated that there has been significant business interruption and that employers are making every effort to ensure staff continue to benefit from full pay.
• It would be important, as outlined in the guidance, to retain evidence of business disruption and the rationale for making an application under the scheme.