Two new job support schemes

Updates from previous job support scheme post

The job support scheme now comprises of two schemes from the 1st November 2020. This is based on the new government tier system.

JSS Open

The first scheme is called JSS Open, and is available for businesses that remain open but with employees working reduced hours.

Eligible

  • The employee must work at least 20% of their usual hours as defined by the previous CJRS scheme closed on 31st October 2020.
  • The reduction in hours must be agreed in writing with the employee.
  • Employees must be on the payroll of the employer between 6 April 2019 and 23 September 2020 and included on at least one RTI return in that period and submitted to HMRC on the 23 September 2020.

How much is paid

  • The employer must pay for all of the worked hours at the employee’s agreed reference salary.
  • The employer must pay up to 5% of the value of the hours not worked, up to £125 per month.
  • The government will cover up to two thirds of the hours not worked.
  • The employer must pay all the employers national insurance on all the wages the employee receives plus any employers minimum contribution to a workplace pension

Claims

  • Employers will be able to claim under either JSS from the 8 December 2020.
  • A claim can’t be submitted for a particular employee until the employee’s wages have been paid and reported under RTI.

Example of JSS Open

Carol is employed as a  childminding assistant on an annual salary of £15,000 or £1,250 per month. In a normal month she would work 140 hours, which is £8.93 per hour.

It was agreed that due to coronavirus restrictions and a reduction of children attending the setting that Carol would work 28 hours per month for £250.04. To qualify for the JSS Open, the employer must pay Carol 5% of her remaining normal hours £50.00 (5.6 hours x £8.93). The JSS grant should cover the cost of 61.67% of the total 112 non working hours : £617.06 (69.07 x £8.93).

The total pay received by Carol is £916.84 (£250.04 + £50.01 + £616.79), which is 73.33% of her normal pay.

The employer would also have to pay employers national insurance and workplace pension payments on this wage.

Example of JSS Closed

Dawn has an annual salary of £18,000 or £1,500 per month. Under this scheme the grant will cover for two thirds of the normal pay of furloughed employees, who cannot work at all, up to a maximum of £2,083.33 per month. The employee must give up one third of their wages and will have to agree to that change in their employment contract in writing. This example is based on a business located in a Tier 3 zone.

The salary payable to Dawn is £1,500 x 2/3 = £1,000 per month.

The employer would also have to pay employers national insurance and workplace pension payments on this wage.

 

 

 

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JSS Closed

The second scheme is called JSS Closed – this scheme can only be used by businesses which are required to close by the coronavirus regulations, this is Tier 3 restrictions in England.
To use the JSS Open scheme there are conditions to meet and an agreement must be in place in writing between employer and employee. Due to the late advice this leaves a very limited time to discuss and sort between employer and employee to access immediately from the 1st November 2020. A more detailed post can be found on our website www.accountancykids.co.uk/news

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