The new Job Support Scheme (JSS), Furlough mark 2, was updated on 22 Oct 2020. It was met with pretty much universal delight and applause.
For many, the updated Job Support Scheme is a good replacement of the current Furlough scheme. The Furlough scheme, modified since its introduction finishes at the end of October 2020. The Job Support scheme has bene deferred until at least December 2020. A new Furlough scheme, as announced on 31-Oct-2020 is effective from 01-Nov- 2020
The new scheme was announced with other financial support measures. As of 09-October-2020 a new scheme introduced where no employer contribution required
If you want to find out more about the bits that Rishi Sunak announced then check this recorded live broadcast. Self employed grant, VAT, self assessment, Bounce Back loans and Support were included.
Firstly, let’s see the ,main parts of the scheme. Your business will still pay your employees for time worked. The pay for the hours not worked will be shared between your business, your employees, and the Government.
The Government will pay 61.67% of hours not worked up to a cap, with the employer also contributing 5% of the hours not worked. Your employees will earn a minimum of 73% of their normal wages, where the Government contribution has not been capped.
The cap per employee is £1,542 per month, or £356 per week..
Employers using the Job Support Scheme will also be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Job Retention Bonus
The Job Retention Bonus is a £1,000 one-off taxable payment to you (the employer), for each eligible employee that you furloughed and kept continuously employed until 31 January 2021.
You’ll be able to claim the bonus between 15 February 2021 and 31 March 2021. You do not have to pay this money to your employee.
Who can claim?
You can claim the bonus if you’re an employer who has furloughed employees and made an eligible claim for them through the Coronavirus Job Retention Scheme. Your employee must have been eligible for the Coronavirus Job Retention Scheme grant for you to be eligible for the bonus.
In the three tax months ending 5 February 2021, the employee must have been paid a total of at least £1,560 (gross).
The employee must be something in each of the tax months between 06.11.20 to 05.02.21 – total being at least £1,560
Since the recent announcement of the Furlough scheme for November 2020 it’s likely the Job Retention Bonus eligibility will be revisited. The key will be to not make staff redundant.
Decisions
If your business employs staff then it’s a continuation of tough decisions.
The best way to make tough decisions is to look at your cash flow future. You will make better decisions with a plan, plans give you options.
Scheme illustration with numbers
Job Support Scheme Illustration: Serena, working weekly, normal weekly wage of £420
| Hours worked | 20% | 30% | 50% | 70% | 90% |
|---|---|---|---|---|---|
| Pay for time worked | £84 | £126 | £210 | £294 | £378 |
| Employer top up | £17 | £15 | £11 | £6 | £2 |
| Total gross pay | £308 | £322 | £350 | £378 | £406 |
| Job Support Grant | £207 | £181 | £130 | £78 | £26 |
Job Support Scheme Illustration: Serena, normal monthly pay of £1,500
| Hours worked | 20% | 30% | 50% | 70% | 90% |
|---|---|---|---|---|---|
| Pay for time worked | £300 | £450 | £750 | £1,050 | £1,350 |
| Employer top up | £60 | £53 | £38 | £23 | £8 |
| Total gross pay | £1,100 | £1,150 | £1,250 | £1,350 | £1,450 |
| Job Support Grant | £740 | £648 | £463 | £278 | £93 |
If want a free guide on managing your cash flow then follow the link
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