The Commissioner for Revenue (CfR) has recently issued a notice to self-employed persons, who were in receipt of a COVID wage supplement, with respect to the calculation of their social security contributions (SSC) due.
The wage supplement represents or supplements the normal income of the self-employed person and hence is taxable in the hands of the recipient. When effecting payment of the COVID wage supplement, the Government withholds a 10% prepayment on account of the SSC due by the self-employed person. The self-employed person will then have to calculate the total amount due by way of SSC to the CfR and then deduct the amount of SSC withheld by the Government when effecting payment of the COVID wage supplement.
