Michael McGrath (Cork South Central, Fianna Fail)
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53. To ask the Minister for Finance the estimated amount of tax to be received from employees in receipt of the temporary wage subsidy scheme; the way in which the amount of tax due will be worked out in practice; the way in which this will be paid in practice; if it is through the deduction of credits in 2021, if that will result in higher taxes being paid in 2021; and if he will make a statement on the matter. [9756/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that payments made to employees under the Temporary Wage Subsidy Scheme (TWSS) are liable to Income Tax and the Universal Social Charge (USC). However, in keeping with the Government’s objective of getting much needed assistance to employees during the period of the crisis, the subsidy payments are not taxable in real-time through the PAYE system. Instead, employees will be liable to tax and USC on the subsidy amount paid to them by way of review at the end of the year.

It is not possible for Revenue to quantify the likely amount of tax to be received from employees arising from the TWSS payments at this point in the year. This will require assessment at year end of those who benefitted from the scheme, including their length of time on the scheme, the amounts of subsidy received, and any other income earned over the course of 2020.

When an end of the year tax review takes place, it may be the case that an employee’s unused tax credits will cover any further liability that arises. Where this is not the case, Revenue has informed me that it is normal practice to collect any tax and USC owing in manageable amounts by reducing an individual’s tax credits for a future year(s) in order to minimise any potential financial hardship. Additionally, if an individual has any additional tax credits to claim, for example health expenses, this may also reduce any tax owing.

Revenue has assured me that it will adopt a fair and reasonable approach to the collection of any tax owed arising from the TWSS, having regard to the financial circumstances of the persons concerned.

Michael McGrath (Cork South Central, Fianna Fail)
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54. To ask the Minister for Finance further to Parliamentary Question No. 120 of 20 May 2020, the status of the issue regarding women returning from maternity leave being excluded from the temporary wage subsidy scheme; if the matter requires primary legislation in order to be rectified; and if he will make a statement on the matter. [9788/20]

Danny Healy-Rae (Kerry, Independent)
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59. To ask the Minister for Finance his plans to ensure that the necessary changes are made to the temporary wage subsidy scheme to ensure that women that have been on maternity leave can avail of the scheme; and if he will make a statement on the matter. [9910/20]

Mary Lou McDonald (Dublin Central, Sinn Fein)
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67. To ask the Minister for Finance when the change to the temporary wage subsidy scheme will come into effect to accommodate the salaries of those that have returned to work after a period of maternity or adoptive leave and that may not have been on the payroll of their employer on 29 February 2020 or paid in either January or February 2020. [10245/20]

Michael McGrath (Cork South Central, Fianna Fail)
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78. To ask the Minister for Finance when the fix to the temporary wage subsidy scheme enabling mothers on maternity leave to apply to the scheme will be operational; and if he will make a statement on the matter. [10322/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 54, 59, 67 and 78 together.

The Temporary Wage Subsidy Scheme (TWSS) is one of a number of significant measures that have been introduced since the beginning of March to attempt to minimise the negative impact on the labour market through an exceptional period, where at least one million workers are now relying on some form of State support.

The aim of the scheme is to maximise staff retention and firm viability by maintaining the link between the employer and employee. As of 8 June 2020, over 59,000 employers have registered with Revenue for the TWSS, over 520,900 employees have received at least one payment under the scheme and the cumulative value of payments made to employers is €1.43 billion.

On 29 May, I announced an important change to the TWSS to deal with the issue of those returning from maternity or adoptive leave which was raised by various parties and interest groups.

Officials had been looking at how it might be possible to address the issue in a way that ensures consistent treatment with other employees who were on the payroll in January and February, whose salaries were taken into account in determining TWSS payments for employers.

Following Government approval, a change to the TWSS will be made as an exceptional measure to accommodate the salaries of those who have returned to work after a period of maternity or adoptive leave who consequentially were not on the payroll during the relevant period.

The amendment will be legislated for later in the year as part of the usual Finance Bill 2020 process but in the interim, Revenue has agreed that this provision will be operational from 12 June and that the subsidy will be backdated, where applicable, to the later of either the date of recommencement of employment or 26 March 2020.

I am satisfied that this change addresses the matter raised and ensures appropriate operation of the TWSS in recognition of the unique circumstances applying to those returning to work after a period of maternity or adoptive leave by allowing for commensurate treatment with other employees who were on the payroll on 29 February.

Further details of how the measure will operate have now been published by Revenue, and I would highlight that the manual process being adopted will require input from employers so I would encourage them to contact Revenue to allow for payments to be processed as quickly as possible.