1st September 2020
September is here and on top of a change of seasons we are also seeing a change to the Government’s Job Retention Scheme.
Support offered to furloughed employees by the Government will drop from 80% of wages up to £2,500 per month, to 70% up to £2,187.50 per month, with employers required to top up the extra 10%.
On top of this, employers must continue to payroll National Insurance and Pension contributions for all furloughed employees.
This is following Chancellor Rishi Sunak stating that the scheme will not be extended, and that businesses should prepare for this by making monthly changes as the Government support subsides.
What changes are ahead?
From October the Government’s support will drop again to 60% of furloughed employees’ wages up to £1,875 per month. Similarly to the current situation, employers will have to top up the remaining 20%.
Towards the end of the year the new Job Retention Bonus Scheme will come into effect. This will serve to encourage employers to keep their workers on by giving organisations a one-off payment of £1,000 for each person brought back from furlough. To qualify for this payment employers must keep their previously furloughed staff from 1st November 2020 to at least 31st January 2021, and they must earn on average at least £510 per month.
If they meet this criteria, employers will be able to claim their £1000 bonus(es) after they’ve filed for their PAYE in January. They can expect payment in February 2021.
Sound complicated?
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