The Return of Furlough for November Payroll

Just as we were expecting that the Job Support Scheme would start on 1st November, replacing the Coronavirus Job Retention Scheme (usually known as the furlough scheme), it has now been announced that The Coronavirus Job Retention Scheme has been extended for a month, with employees receiving 80% of their current salary for hours not worked. In this article we summarise the details.

Furlough Scheme Details for November 2020

As before, employers small or large, charitable or non-profit, are eligible for the extended Job Retention Scheme, which will continue for a further month from 1st November.

The details of the Furlough Scheme starting 1st November are slightly different that previously. The key points are:

  • Employees will receive 80% of their current salary for hours not worked, up to a maximum of £2,500.
  • Businesses will have flexibility to bring furloughed employees back to work on a part time basis or furlough them full-time.
  • Businesses will only be asked to cover National Insurance and employer pension contributions which, for the average claim, will account for c.5% of total employment costs.
  • Employees must have been on Real Time Information (RTI) Payroll by 30th October.
  • Employees do not have to have been previously furloughed.
  • Employees can be on any type of contract. Employers will be able to agree any working arrangements with employees.
  • Employers can claim the grant for the hours their employees are not working, calculated by reference to their usual hours worked in a claim period. Such calculations will broadly follow the same methodology as currently under the CJRS.
  • When claiming the CJRS grant for furloughed hours, employers will need to report and claim for a minimum period of 7 consecutive calendar days.
  • Employers will need to report hours worked and the usual hours an employee would be expected to work in a claim period.
  • For worked hours, employees will be paid by their employer subject to their employment contract and employers will be responsible for paying the tax and NICs due on those amounts.
  • The Government expects that publicly funded organisations will not use the scheme, as with the existing CJRS. However, partially publicly funded organisations may be eligible where their private revenues have been disrupted.

Broadly speaking of course, we’ve been here before and although the Government is saying that it will confirm shortly when claims can first be made in respect of employee wage costs during November, we are prepared for the scheme and its payroll process requirements. We have been here before, as they say. The Government confirms that that there will be no gap in eligibility for support between the previously announced end-date of CJRS and this extension.

Contact us for anything to do with the Furlough scheme and payroll.

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