What is the Job Support Scheme and how does it work?

Kate Palmer from HR experts Peninsula gives advice on what the two versions of the new Job Support Scheme will mean for employers and employees.

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On 24th September, the Chancellor, Rishi Sunak, announced that, after the Job Retention Scheme (JRS – also known as the furlough scheme) ends on 31st October, employers will be able to benefit from the new Job Support Scheme (JSS). The new scheme will be available for employers from 1st November regardless of whether they have made use of the Job Retention Scheme or not and will be in place until 30th April 2021.

Under the Job Support Scheme, with further clarification having been released on 22nd October, the Government will be able to help employers who are suffering from business downturn as a result of coronavirus restrictions or who have been told to close completely. It is separated into two provisions: JSS (Open) and JSS (Closed).

To access the JSS (Open), employees must work for at least 20% of their regular working hours – in ‘viable’ jobs – with employers covering the wages for those worked hours. For hours not worked, employers will be asked to contribute 5% of employees’ wages while the Government will contribute 61.67% of wages (for hours employees do not work), to a monetary cap of £1,541.75 per month per employee. The scheme will be open to small and medium-sized firms across the UK. However, for large businesses to qualify for the JSS (Open), they will have to meet a financial assessment test to show that their turnover is lower due to experiencing difficulties from coronavirus.

JSS (Closed)

On 9th October, the Chancellor first announced the expansion to the original JSS which is now being referred to as JSS (Closed). From 1st November, all businesses across the UK who are required to close as part of local/national lockdown will receive wage assistance through JSS (Closed) for employees who do not work for a minimum of seven calendar days. A financial assessment for large businesses will, however, not apply. The expansion is being rolled out to run until 30th April 2021, with the Government paying two-thirds of each employee’s salary, up to a maximum of £2,083.33 a month per employee. Employers will not be required to contribute towards staff wages, but will have to cover National Insurance Contributions and pension contributions.

For an employee to be entered into either of the two versions of the JSS, they must have been on the employer’s PAYE payroll between 6th April 2019 and 23:59 on 23rd September 2020. That means that a Real Time Information (RTI) submission notifying payment to the employee to HMRC must have been made at some point from 6th April 2019 up to 23:59 on 23rd September 2020. The guidance confirms that JSS grants will be paid in arrears to reimburse the employer for the Government’s contribution. Claims can only be submitted in respect of a wage cost actually incurred in any given pay period after payment to the employee has been made, and that payment has been reported to HMRC via an RTI submission.

Claims can be made online from 8th December 2020 and reimbursement will be made every month.



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