With effect from 26th March 2020, employers who have been adversely affected by Covid-19, have been operating the wage subsidy scheme along with their own payroll as income supports to their employees.

2020 Tax Liability

Employee’s may have a liability due of income tax and USC arising from TWSS payments. From January 2021, Revenue will provide a Preliminary End of Year Statement for 2020 to assist each employee to determine the amount of USC and Income Tax due. These statements will be available through MyAccount.

Submitting Payment

To pay employees’ tax liabilities the employer can:

• provide funds to each employee to meet their Income Tax and USC liabilities, as shown in their Preliminary End of Year Statement. Each employee must then pay their liability via RevPay.
• amend the last payroll submission of 2020. Additional ‘IT paid’ and ‘USC paid’ must be added that equals the liability shown on the Preliminary End of Year Statement. This must be done for each employee.


The employee’s amended Preliminary End of Year Statement will then be recalculated showing payments made. It is important to note, that the employee must file their 2020 Tax Return to comply with the above.
Benefit-in-Kind will not be applied to these payments made on behalf of employees’


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