Revenue Notice: Class 2 SSC Implications Of COVID Wage Supplement

The Revenue has published a notice with clarifications on the Class 2 social security implications of the COVID-19 wage supplement.

On 20 May, the Revenue has published a notice with clarifications on the social security contribution (SSC) implications of the COVID-19 wage supplement. In summary:

• The wage supplement is taxable in the hands of the self-employed recipient.
• The self-employed person will receive the applicable wage supplement less a deduction of 10% which will be withheld by Government as prepaid SSC.
• The self-employed person would need to compute the Class 2 SSC for each social security payment period. [As a reminder, the Class 2 contributions for 2020 are based on the annual net profit or income for 2019. The applicable rates are accessible from here.]