Blog Layout
Job Support Scheme Update
Gemma Higgins • October 25, 2020
Rishi Sunak has released updated information about the Job Support Scheme. We have summarised the key facts below...
Under new measures the Job Support Scheme (JSS) will now operate under 2 schemes:
• JSS Open (for all businesses) and;• JSS Closed (for those businesses that are legally required to close under lockdown regulations)
What are the rules for the JSS Open?
Under JSS Open, an employee will need to work at least 20% (previously 33%) of their normal hours.
They will receive:
• normal pay for the hours they work, and;• two-thirds of pay (subject to a cap of £1,541.75) for the hours they do not work.
o For that two-thirds top-up, the government will pay 61.67% and the employer will pay 5%, plus NI and pension contributions on the full amount (which must all be paid in advance by the employer - see below ‘How payments will be made’)
What are the rules for the JSS Closed?
Employees will receive two-thirds of their normal wages, funded by the government (capped at £2,083.33).
The employer will have to pay the NI and pension contributions on this amount.
How will payments be made?
Employers will claim in arrears for salary already paid. The first claims can be made from 8th December 2020 (i.e. 5 weeks after the scheme opens on 1st November 2020) via an online portal, similar to the Coronavirus Job Retention Scheme.
How do I calculate the amount of pay?
To calculate the amount of pay: for employees who are paid a fixed salary, the 'Reference Salary' is the greater of:
• the wages payable to the employee in the last pay period ending on or before 23 September 2020• the wages payable to the employee in the last pay period ending on or before 19 March 2020, this may be the same salary calculated under the CJRS scheme
For those who receive variable pay, the 'Reference Salary' is the greater of:
• the wages earned in the same calendar period in the tax year 2019 to 2020• the average wages payable in the tax year 2019 to 2020; or,• the average wages payable from 1 February 2020 (or the employee’s start date if later) until 23 September 2020
Your employees will be able to check if you have made a Job Support Scheme claim on their behalf through their online Personal Tax Account. Employees can set up a Personal Tax Account on GOV.UK, by searching 'Personal Tax Account: sign in or set up'.
Can I top up employee’s wages?
You must pay 5% of the usual pay for hours not worked, up to a maximum of £125 per month and you can top up wages beyond this if you wish. This is a change from the initial guidelines which stated that the government expectation was that employers would not top-up wages beyond the scheme.
Do I need to obtain written agreement?
Yes - there must be a written agreement between employer and employee, agreeing to the changes for both the Open and Closed JSS.
This agreement must be made available to HMRC on request.
Which businesses are eligible?
All SMEs are eligible, and large business are eligible if their turnover has fallen due to coronavirus (according to their VAT returns). The government says it discourages, but will not prohibit, a large business from claiming on the JSS if it is making capital distributions (such as dividend payments).
Can I make a claim for an employee who is on notice?
No - employers cannot claim for an employee who has been made redundant or is serving a contractual or statutory notice period during the claim period.
Will the scheme be reviewed?
Yes – the Government have confirmed that they will review the scheme payment terms in early 2021.
What checks will HMRC be making?
HMRC have made it clear that they will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information.
HMRC also intend to publish the names of employers who have used the scheme whilst encouraging the public to report fraud if they have evidence to suggest an employer is abusing the scheme.
Can employees train during hours not worked?
Yes - Employees will be able to undertake training (voluntarily) in non-working hours.
We'll continue to provide updates as we receive them so keep checking back to ensure that you're fully up to speed with the latest news on the Job Support Scheme.
Other posts:
Did you know the 4-Day Week campaign kicked off a six-month trial in November 2024?
As our working and home lives continue to become ever more intertwined the blurred boundaries can lead to increased stress for employees, in extreme cases, burnout and a general decrease in employee well-being.
As we approach the end of the year, it's the perfect opportunity to ensure that your employees are making full use of their annual leave entitlements, especially if your company's holiday policy does not allow for unused leave to roll over into the following year.
Contact Information
T: 07786 426196
Registered Address: 22 Martineau Lane, Hurst, RG10 0SF
Company No. 11740421
Stay In Touch