Employee Tax Liabilities 2020
Temporary Wage Subsidy Scheme (TWSS) and Pandemic Unemployment Payment (PUP)
During 2020 many employees will have received part of their wages through the TWSS or may have been in receipt of the PUP. Tax was not deducted at source on these payments, but the amounts are taxable in the hands of employees.
Preliminary end of year tax statements will be available to employees through their Revenue myAccount from Friday 15th January. The preliminary statement will give an estimate of tax due by the employee in respect of 2020 (including tax due on TWSS subsidy payments, PUP, etc.)
An employee can submit claims for additional tax credits (e.g. medical expenses, tuition fees, working from home expenses etc.) through myAccount or disclose additional income such as dividends. Once these submissions are made a Final Statement will issue confirming the employee’s final tax liability.
Employers will not receive copies of employee Statements.
An Employee can either:
pay the tax amount to Revenue, or
have the tax collected (up to a maximum of €6,000) by reducing future tax credits from 2022 over a maximum period of 4 years.
An employer can pay the employee’s tax liabilities on any TWSS underpayment without giving rise to a BIK charge. Note that such employer payments must be made by 30 June 2021 and an employer will not receive a corporation tax deduction for such payments.