From today (September 1) there will be changes to the way that the Coronavirus Job Retention Scheme (CJRS) makes payments to employers.
What is changing?
For the period from 1 September to 30 September the schemes grant will reduce from the previous 80% down to 70% of employees’ pay up to a cap of £2,187.50 for hours furloughed employees do not work.
Employers will need pay the remaining 10% to ensure that furloughed workers still receive a minimum of 80% of their usual wages for hours they do not work, up to a cap of £2,500 per month.
Employers will not be able to reclaim employer NICs and minimum pension contributions.
Further changes following in October
From October the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed
|Government contribution: employer NICs and pension contributions||No||No||No|
|Government contribution: wages||80% up to £2,500||70% up to £2,187.50||70% up to £1,875|
|Employer contribution: employer NICs and pension contributions||Yes||Yes||Yes|
|Employer contribution: wages||–||10% up to £312.50||20% up to £625|
|Employee receives||80% up to £2,500 per month||80% up to £2,500 per month||80% up to £2,500 per month|
If you require any assistance with a CJRS claim or any other tax matter then please get in touch.