Covid-19 wage subsidy schemes: Prepare for a possible tax liability in the new year
Brace yourself for a possible tax liability in the new year. But you can soften the blow
Many taxpayers are entirely unaware of what January might hold for their bank balances as a result of the pandemic unemployment payment and the temporary wage subsidy schemes.
Just when you thought things couldn’t get worse, it looks like they might. Wage subsidies that were introduced earlier this year to help embattled employers cope with seismic reductions in revenues, while still paying their employees, have a hidden sting in the tail for those employees – unexpected tax liabilities.
The Revenue Commissioners have now embarked on a compliance programme for these subsidy schemes, getting all the relevant information from employers. It says it is going to inform all affected taxpayers – which could number as many as one million – just what their tax liability, if any, is this January.