Next month marks the final stint of the Coronavirus Job Retention Scheme (CJRS) and so, after the 31 October 2020, employers will no longer be able to access financial support from the Government to cover a proportion of the wage costs of furloughed staff.
As it did at the start of September, employers’ entitlement will once again be tapered from 1 October; as such, the amount they are required to contribute will increase, whilst the Government’s contribution will be cut further.
The Government will cover 60 per cent of a furloughed employees wages, up to a maximum of £1,875.
You, as the employer, will therefore be required to pay the remaining 20 per cent to make up the total 80 per cent, up to a cap of £2,500. You will also be responsible for covering the cost of Employer National Insurance contributions and pensions contributions.
After the scheme closes on 31 October, claims can be made up until 30 November 2020.
Preparing for the end of the CJRS
As the Coronavirus Job Retention Scheme (CJRS) is slowly wound down by the Government, businesses must ensure their PAYE reporting and payroll processing reflects the required funding contributions.
Not only this, but the cessation of the CJRS and subsequent start of the Job Support Scheme (JSS) on 1 November is likely to have a considerable impact on a businesses employment costs and so it would be sensible to anticipate this whilst there is still time to plan.
Businesses should also remain aware of the Job Retention Bonus, which offers employers £1,000 for every furloughed employee who is brought back, continuously employed and paid at least £520 a month on average from the end of October 2020 to 31 January 2021.
How can George Hay help?
We have been assisting and continue to assist our clients with navigating the CJRS. We will continue to monitor any further developments, in respect of the scheme, with interest.
Aside from our dedicated payroll team, we also have a team of expert business advisers and accountants who can help you to assess the impact of changing employment costs on your cash flow.
To discuss your circumstances in more detail with one of the team, or to find out how we support employers across the UK, contact us today.