Do you have a question about Coronavirus Job Retention Scheme/Furloughed employees? please contact Saeed Sharif Chartered Certified Accountant, Assuring you of our best attention at all times.
From 1 July, employers can bring back to work employees that have previously been furloughed for any amount of time and any shift pattern, while still being able to claim (Coronavirus Job Retention Scheme) CJRS grant for their normal hours not worked. When claiming the (Coronavirus Job Retention Scheme) CJRS grant for furloughed hours; employers will need to report and claim for a minimum period of a week.
If a non-furloughed employee is to be added to the scheme, this needs to be done by 10th June 2020 to allow them to be on for the minimum furlough period (3 weeks) before the scheme closes to new entrants on 30th June 2020.
From 30 June onwards, employers will only be able to furlough employees that they have furloughed for a full 3 week period prior to 30 June.
The Chancellor set out more details on how the Coronavirus Job Retention Scheme (CJRS) will continue to support jobs and business as people return to work, following the announcement of an extension of the scheme on 12 May.The scheme updates mean that the following will apply for the period people are furloughed:
- June and July: The government will pay 80% of wages up to a cap of £2,500 as well as employer National Insurance (ER NICS) and pension contributions. Employers are not required to pay anything.
- August: The government will pay 80% of wages up to a cap of £2,500. Employers will pay ER NICs and pension contributions – for the average claim, this represents 5% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- September: The government will pay 70% of wages up to a cap of £2,187.50. Employers will pay ER NICs and pension contributions and 10% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 14% of the gross employment costs the employer would have incurred had the employee not been furloughed.
- October: The government will pay 60% of wages up to a cap of £1,875. Employers will pay ER NICs and pension contributions and 20% of wages to make up 80% total up to a cap of £2,500. For the average claim, this represents 23% of the gross employment costs the employer would have incurred had the employee not been furloughed.
For guidance and advice on how best to manage your people through
these changes, Please Contact Saeed Sharif Chartered Certified Accountants in Dundee.