We are all aware that the Coronavirus Job Retention Scheme (commonly referred to as the furlough scheme) has taken some getting used to and with the assistance of your payroll team we have got through the past few month together, calculating and claiming and answering those ‘What if?’ questions.
The government furlough scheme is changing and it is worth making some notes in your diary as a reminder of the changes ahead.
The employer loses the benefit of claiming employer’s national insurance and pension costs but still keeps the furlough claim at 80% (to a maximum of £2500)
The government will only pay furlough claims to 70% (capped at £2,187.50) with the employer then picking up the additional 10% plus employer’s national insurance and pension costs
The final month the government will only pay furlough claims to 60% (capped at £1,875) with the employer then picking up the additional 20% plus employer’s national insurance and pension costs
Paying a gross salary to your employee is only the beginning understanding and calculating the on payroll costs, and the total cost to employer over the next few months, will help you plan.
Legislation updates on payroll are being released on a daily basis, make sure you understand the processes and costs to your business by contacting your payroll team, who can help you to understand your payroll, and the implications for your both your business and your employees.
If you have any questions on payroll, or the furlough scheme, please contact us
For more information:
If you need assistance on calculating the claims which are not straightforward, Dipali Buch, Partner and Head of Payroll in her webinar explains the calculations with helpful detailed examples and formulae to use