Job Support Scheme postponed & Coronavirus Job Retention Scheme extended

Posted: 3rd November, 2020

Following the government's introduction of the second national lockdown, we wanted to provide help to businesses by summarising the key changes in relation to their implications for payroll. As well as the Job Support Scheme being postponed and the Coronavirus Job Retention Scheme being extended, there's a handy reminder about COVID-19 related Statutory Sick Pay along with some useful links for various employee support schemes via HMRC. As this is a fluid and changing situation, if we learn more about further payroll implications over the weeks ahead, we'll keep you posted on our social media channels.

Coronavirus Job Retention Scheme

The Job Support Scheme which was due to start on 1st November has been postponed and the Coronavirus Job Retention Scheme, otherwise known as furlough, has been extended until March 2021. To remind you about previous furlough arrangements, it was originally winding down in September and October with the government contribution being reduced to 70% and 60% respectively. This weekend's announcement reset the furlough scheme back to what it was in August; this being an 80% government contribution. The main points to note are as follows:-

  • Any member of staff can be placed on furlough leave as long as they were on your payroll on or before 30th October 2020 (this requires the employee to have been present on an RTI upload to HMRC in this timeframe)
  • Government is to contribute 80% of each employee's salary up to a maximum of £2,500 per month
  • Employer to pay pension and National Insurance contributions
  • Flexible furlough is allowed as per July 2020 implementation

COVID-19 Statutory Sick Pay (SSP)

2 weeks of COVID-19 SSP is claimable by employers for employees where:-

  • Employee or someone they live with has tested positive for coronavirus
  • Employee has been notified by the NHS or public health authorities that they have been in contact with someone with coronavirus (note that this isn’t through the COVID-19 app)
  • Someone in employee’s ‘support bubble’ (or employee's ‘extended household’ if they live in Scotland or Wales) has coronavirus symptoms or has tested positive for coronavirus
  • Employee has been advised by a doctor or healthcare professional to self-isolate before going into hospital for surgery

Staff can also get SSP if both of the following apply:-

SSP is claimable at £95.85 per week from HMRC. You're able to top up employees' weekly wages if you wish. To be eligible for SSP, employees must be off work for at least 4 days in a row. This includes non-working days. Please also note that SSP can't be claimed if employees are self-isolating following a return to the country from abroad.

Test and Trace Support Payment Scheme

Some employees may be eligible for the Test and Trace Support Payment Scheme which is £500.

Financial support for employees working from home

Did you know that your employees can claim back £6 per week from HMRC where they've been forced to work from home? Access further details including information on the claim process.

Outsourced payroll makes life easier for employers

As a provider of outsourced payroll services, we're here to assist businesses with their complicated payroll administration. Read about our outsourced payroll and pension management service, and contact us to arrange a free-of-charge meeting with our payroll team to discover how we can save you time, money and hassle.