Job Support Scheme – Update Summary – 22nd October 2020
IN Business Support

Job Support Scheme – Update Summary – 22nd October 2020

As you may be aware the existing Job Retention Scheme finishes on 31st October and is replaced with a new ‘Job Support Scheme’ which will run for 6 months from 1st November.

As you may be aware the existing Job Retention Scheme finishes on 31st October and is replaced with two new Job Support Schemes which will run for 6 months from 1st November.

1. JSS Open – Provides support to businesses that are open where employees are working shorter hours due to reduced demand.

2. JSS Closed – Provides support to businesses whose premises are legally required to close as a direct result of Covid-19 restrictions. This includes premises restricted to delivery or collection-only services from their premises, and those restricted to providing food and/or drinks outdoors.

There is still further detailed guidance to be released but here is what we currently know.

Summary of the JSS Open Scheme

  • Employees will be required to work a minimum of 20% of their usual hours, payable by the Employer as usual.
  • For hours not worked, the government will cover 61.67% of the usual hours, up to a cap of £1541.75 per month.
  • Employers will be required to pay 5% of the hours not worked, up to a cap of £125 per month.
  • Employers can further top up an employees salary if they choose.
  • Employers will be required to cover all employer NI and pension contribution costs.
  • This means employees should receive a minimum of two thirds of their usual pay for hours not worked.

Summary of JSS Closed:

  • Government will fund two thirds of employee’s usual wages for time not worked, up to a cap of £2083.33 per month.
  • Employers are NOT required to contribute but may top up governments contribution if they choose to.
  • Employers are required to cover all employer NI and pension costs.

Am I eligible as an Employer?

  • All employers with a UK bank account and UK payroll can make a claim. You do not have to have previously used the Job Retention Scheme.
  • Employers using this Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria. The Job Retention Bonus is a £1,000 taxable bonus payment to the employer for each eligible employee furloughed and kept in continuous employment until 31st January 2021.

How are claims made?

  • The schemes will open from 1 November 2020 to end of April 2021. Employers will be able to make online claims from 8th December 2020 and these will be paid on a monthly basis.
  • Grant payments will be payable in arrears meaning that a claim can only be submitted in respect of a given pay period, after payroll has been processed and submitted and payment has been made to the employees.

If you have any questions relating to these schemes and how they can work for you please let us know and we can book in a phone call. 

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