Tax liability for TWSS and PUP Payments


September 2020: Revenue has clarified how workers who received the Pandemic Unemployment Payment (PUP) or whose wages were subsidised by the Temporary Wage Subsidy Scheme (TWSS)* will pay any taxes owed.



Usually income tax and USC (Universal Social Charge) are deducted in real-time when an employee is paid by their employer. Both the TWSS* and PUP payments were introduced quickly to deal with the impact of the pandemic crisis. Over the 22 weeks of the TWSS, employers did not deduct income tax payments from their employees’ wages, resulting in an accumulation of taxes that must be paid back. Similarly, the PUP is considered taxable income, which was not taxed at the source.

*The Temporary Wage Subsidy Scheme was replaced by the Employment Wage Subsidy Scheme on 1 September 2020  and EWSS is expected to continue until 31 March 2021.


Who does this impact?

Any worker who was or still is in receipt of PUP or employees whose salary was subsidised by the TWSS.


Repayment Options

 There are  two options to pay back taxes owed:

  1. Pay taxes partly or in full at the end of this year 2020 or,
  2. Allow Revenue to deduct the liabilities through reductions in your tax credits over a period of four years, starting in 2022.


Preliminary End of Year Statement


At the end of 2020, anyone who received payments under the TWSS or the PUP will receive a ‘preliminary end of year statement’ from Revenue outlining their liabilities.

According to Revenue, the Preliminary End of Year Statement will include:

  • Pre-populated information showing the amount of TWSS and/or PUP payment received by the employee according to Revenue records.
  • Preliminary calculation of their income tax and USC position for 2020
  • Clarity of your tax position –  whether taxes are balanced, underpaid or overpaid for the year.

Once the preliminary statement is available, employees can update their personal record, declare any additional income, and claim additional tax credits due, such as qualifying health expenses to arrive at their final tax bill for 2020.


How to Pay


  • If you want to pay the taxes this year can do so using the MyAccount Portal on the Revenue website.
  • For those who decide to not pay all or some of the tax owed at the end of 2020, Revenue will collect the liability, interest-free, by reducing the employees tax credits over 4 years.
  • The reduction of tax credits will start in January 2022.


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