Coronavirus Job Retention Scheme Update

Payslip

 

The Government has now published full guidance on the coronavirus job retention scheme. Under the scheme, employers that have furloughed staff can claim a grant covering 80% of the wages for a furloughed employee, up to £2,500 a month.

 

The scheme was announced last week by Chancellor Rishi Sunak and will be open for an initial three months, starting from 1 March 2020.

 

Only employers that had a PAYE payroll scheme on or before 28 February 2020 are eligible. The scheme covers full-time employees, part-time employees, employees on agency contacts and employees on zero-hours contracts

 

Employees that were made redundant after 28 February 2020 but rehired by their employer can be furloughed. Employees hired after 28 February 2020 cannot be furloughed

 

Claims will be made to HMRC through an online service, which should be up and running by the end of April.

 

The Government has announced that it will now cover the employer national insurance costs and the minimum Auto-Enrolment pension scheme contributions (3%) employers have to pay on staff wages for furloughed staff.