How will PUP and TWSS payments be taxed ?

Taxation of Temporary Wage Subsidy Scheme (TWSS) and Pandemic Unemployment
Payments (PUP) for PAYE Tax-payers

The TWSS payments are subject to Income Tax and USC.  Pandemic Unemployment Payments
are subject to Income tax.

1. To view your tax position at the end of the year employees can access their
Preliminary End of Year Statement on the  “MYACCOUNT” portal on www.revenue.ie

2. To finalise your tax position, claim additional credits and reliefs and declare additional
incomes employees must complete a 2020 Income Tax return. Again this can be done on “MYACCOUNT”

3.  From mid-January 2021, Revenue will generate their Statement of Liability for the tax year
2020. This may be balanced, have an overpayment or an underpayment of tax.

4. If employees have an underpayment and owe an amount to Revenue, they may pay
the liability
A. In full or partial, through RevPay payment facility on “MYACCOUNT”        /or/
B. Revenue will arrange to collect the underpayment by reducing their tax credits
over a four-year period commencing next year January 2022. /or/
C. Revenue will also facilitate employers who wish to pay the 2020 income tax and USC liabilities of their
employees where they arise due to the Temporary Wage Subsidy Scheme (TWSS).

Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie