COVID-19 Wage Supplement - Social Security Implications For Self-Employed Persons

The Commissioner for Revenue ("CfR") has published a notice to self-employed persons, outlining the social security implications attached to the COVID-19 Wage Supplement.

Social Security Implications for Self-Employed Persons

Self-employed persons whose businesses have been adversely impacted by the COVID-19 crisis have been able to avail of the Government's contribution by way of basic wage supplement (?800 or less according to eligibility). Since the wage supplement is replacing or supplementing the normal income of the self-employed person it is nevertheless deemed to be taxable in the hands of the recipient.

To this end, out of the ?800 COVID-19 wage supplement (or less according to eligibility) given to each self-employed person, 10% of this wage supplement (amounting to ?80 or less) will be withheld by the Government as the self-employed person's prepaid social security contribution ("SSC").