Employers fear they will have to pay staff tax bills
'Sources said there was growing concern among employers that the unpaid tax will fall to them.'
Fearghal O'Connor, INDEPENDENT.IE
January 17 2021
Concern is growing among employers that they will come under pressure to help staff with the tax bills they have been landed with in recent days, according to taxation experts.
Thousands of workers who were placed on the Temporary Wage Subsidy Scheme by their employers - or who availed of the Pandemic Unemployment Payment - now face tax bills, potentially of thousands of euro.
Employers seeking to pay tax back on behalf of workers who they had placed on a Government Covid subsidy during the summer have been told by Revenue that benefit-in-kind rules will not apply to the extra payment.
Sources said there was growing concern among employers that the unpaid tax will fall to them.
Marian Ryan, consumer tax manager with Taxback.com said that while some larger employers had agreed to pay the bill on behalf of employees others were now under pressure to do so.
"The weight of the issue is likely to weigh even heavier on their shoulders as the preliminary statements are made available by Revenue and their employees receive notification of the tax owing," she said.
Employers want to " help their employees in any way they can, but the vast majority are not in the financial position to be able to cover the liability for the employee".
Fearghal O'Connor, INDEPENDENT.IE
January 17 2021
Concern is growing among employers that they will come under pressure to help staff with the tax bills they have been landed with in recent days, according to taxation experts.
Thousands of workers who were placed on the Temporary Wage Subsidy Scheme by their employers - or who availed of the Pandemic Unemployment Payment - now face tax bills, potentially of thousands of euro.
Employers seeking to pay tax back on behalf of workers who they had placed on a Government Covid subsidy during the summer have been told by Revenue that benefit-in-kind rules will not apply to the extra payment.
Sources said there was growing concern among employers that the unpaid tax will fall to them.
Marian Ryan, consumer tax manager with Taxback.com said that while some larger employers had agreed to pay the bill on behalf of employees others were now under pressure to do so.
"The weight of the issue is likely to weigh even heavier on their shoulders as the preliminary statements are made available by Revenue and their employees receive notification of the tax owing," she said.
Employers want to " help their employees in any way they can, but the vast majority are not in the financial position to be able to cover the liability for the employee".
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