ESB Accountancy outlines the Coronavirus Job Retention Scheme for Glos Employers
The Coronavirus Job Retention Scheme provides financial support to employers to help them to maintain their workforce during the Covid-19 pandemic. Instead of laying workers off, employers can instead furlough them and claim a grant of 80% of their wages from the Government, plus the associated employer’s National Insurance contributions and the minimum level of employer contributions that the employer is required to make under auto-enrolment.
Employees can be furloughed if they were on the payroll as at 19 March 2020 and a PAYE submission had been made to HMRC by that date. Employers can also take back on employees on the payroll as at 28 February 2020, who left or were made redundant before 19 March 2020, and furlough them.
In order to claim a grant in respect of a furloughed employee, the employee must be furloughed for at least three weeks.
Coronavirus job retention scheme times
The scheme is open from 1 March to 31 October 2020. Prior to 1 August 2020, furloughed employees are not allowed to do any work for the employer while on furlough. However, changes are to be introduced from August to allow furloughed workers to return to work part-time while continuing to receive 80% of their wages, with the costs shared between the employer and the Government.
Grant claims must be made online via the online portal. Only one claim can be made for each pay period and should include all employees in respect of whom a grant is claimed. Grants paid under the scheme must be paid over to the employee in full. You must also comply with the usual payroll reporting requirements, and deduct tax and National Insurance from the grant payment and pay it over to HMRC, together with the associated employer’s National Insurance.
HMRC aim to make the payments into the employer’s designated bank account within six working days of a claim.
Reclaim statutory sick pay
Statutory sick pay (SSP) is not normally recoverable and the employer must meet the cost of SSP paid to employees who are absent from work. However, employers who had fewer than 250 employees as at 28 February 2020 are able to claim back SSP for absences related to Covid-19.
Claims, which are limited to two weeks’ SSP per employee, can be made for periods of sickness starting on or after 13 March 2020 where the employee was off work because they had Coronavirus symptoms or were self-isolating because someone in their household had symptoms and for absences from 16 April 2020 where the employee was shielding because of Coronavirus.
Please talk to us at ESB Accountancy to discuss how your business can comply with the new tax, finance and accounting laws – with several decades of financial experience here in Gloucestershire you can either ring us now on – email us on email@example.com or click the Contact Us buttonor please fill the form at the bottom of the contact us page.