Employers who were overpaid Covid-19 wage subsidies in respect of their workers during the pandemic have yet to pay back more than €37 million to Revenue.

The Temporary Wage Subsidy Scheme (TWSS) operated between March and August 2020, providing €2.85 billion in state support to 67,000 businesses, helping to pay the wages of 689,000 employees.

In order to get the scheme up and running quickly, employers were paid a flat rate of €410 per eligible employee for a "transition period" of six weeks, rather than calculating the correct amount payable based on percentages of average weekly pay.

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Businesses were asked to retain any amounts that were overpaid and return them to Revenue following a reconciliation process after the scheme ended.

However, not all employers have returned the money and, additionally, the reconciliation process identified other recipients who had either been ineligible to claim the subsidies or failed to pay the monies to employees.

In total, 1,945 employers were required to repay €40 million in subsidies that they had received under the TWSS following compliance checks by Revenue. This represented 2.8 per cent of businesses that had claimed under the scheme.

Following the reconciliation exercise, a total of €308 million was repayable to Revenue, the majority of which related to the six-week transition period following the introduction of the scheme.

This week, Finance Minister Michael McGrath revealed that employers who received state support under the TWSS have yet to repay a total of €37.35 million. This includes both overpayments and monies that were demanded following compliance checks.

Businesses in the accommodation and food service sector account for over €7.5 million of the total amount owed to Revenue, while another €7 million is owed by wholesale and retail traders, and motor repairs businesses.

Employers in the social work and health sector owe €3.5 million, while those operating in the construction industry account for €3.4 million of the outstanding amount. Entities in the manufacturing sector owe €2.8 million.

Of the €37.35 million, some €33 million is currently included in the tax-debt warehouse with the remainder subject to current collection activity. There is a further €7.9 million under appeal with the Tax Appeals Commission.

Other sectors in which employers owe significant amounts to Revenue in respect of the TWSS include professional, scientific and technical services (€2.6 million), and administrative and support service activities (€2.1 million).

Businesses in the transport and storage sector currently owe €1.8 million, while operators in the education sector owe €1.1 million.

The latest figures were provided by Minister McGrath in response to a parliamentary question from Sinn Féin TD Louise O’Reilly.

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