As you may or may not be are aware, on Friday 12 June the government detailed the changes being made to the Coronavirus Job Retention Scheme (CJRS). However, there is still a lot of confusion about how much employees can work and how much employers will have to pay. Below is a summary which will hopefully help…
From 1 July
Employers can bring furloughed employees back to work for any amount of time and shift pattern. Employers will still be able to claim CJRS for the hours not worked. This includes National insurance and Pension contributions for the hours the employee is on furlough. Employers will have to pay employees in full for the hours they work. The shifts must be agreed with the employees in writing. Please click here for a template letter including guidance.
From 1 August
Employers will be able to bring back employees for any amount of time and shift pattern. The government will pay 80% of wages up to a cap of £2,500 for the hours the employee is furloughed. However, employers will now need to cover all National Insurance and Pension contributions.
From 1 September
The government will cover 70% of wages up to a cap of £2,187.50 for the hours an employee is on furlough. Employers will need to top up employee wages to be at lease 80% for the time they are furloughed including all National Insurance and Pension contributions. In addition, employers should of course pay 100% for any hours worked.
From 1 October
The government will pay 60% of wages up to a cap of £1875 for the hours the employee is furloughed. Employers will pay National Insurance and pension contributions and top up wages to ensure that they receive 80% for the time that they are furloughed.
The scheme closes on the 31st October.
If you are not currently one of our payroll clients but would like a copy of the spreadsheet we gave to our clients to track furloughed employees please click here.
The calculations required for each employee can get complicated. There are several examples on the Government website. However, we would be happy to process your payroll. If you would like to discuss and receive a quote please click here or give us a call on 01332 292022.
As a reminder, if an employee is on furlough, they cannot be asked to complete ANY work.
Finally, if you have any questions or need more information please don’t hesitate to contact us.