If your employer has opted to operate the wage subsidy scheme - you will notice the COVID-19 non taxable pay on your payslip.
The COVID-19 pay is NOT being taxed in Real Time, so at the moment you are not paying any tax, PRSI or USC on this payment
Revenue have stated that subsidy WILL be liable to Income Tax and USC on review at the end of the year
What does this mean for employees?
This means that at some stage before the end of the year the Revenue will calculate how much wage subsidy you were paid and calculate the tax due on it. They will more than likely adjust your tax credits for 2021/2022 for any tax due by the employee (there is no further guidance on how this will be done as of 7th April 2020)
THIS IS NOT FREE MONEY. It is just not being taxed at the moment during this crisis.
If you are not working and are in receipt of the COVID-19 Pandemic Unemployment Payment (also €350) directly from DEASP this will also be taxable in the same was as above - all social welfare benefits ARE taxable.