Important changes to the Job Support Scheme

Important changes to the Job Support Scheme

Following the announcement made by the Chancellor on 22 October 2020, there are some significant changes to the new Job Support Scheme to be aware of.

There are now two options within the Job Support Scheme that can be used depending on companies’ circumstances – Job Support Scheme Open (JSSO) and Job Support Scheme Closed (JSSC). The revised key points are as follows:

Job Support Scheme Open

– Employees are required to work a minimum of 20% of their usual hours

– For the hours worked, the employer is responsible for paying the employee in full

– For the hours not worked, the employer must pay 5%

– The Government will contribute 61.67% of hours not worked, up to a monthly cap of £1,541.75

– Employers will be responsible for funding any Employer National Insurance or pension contributions due on all payments to employees

Job Support Scheme Closed

– Employees are not permitted to complete any work due to the business being closed in line with legal requirements

– Employees will receive 66.67% of their usual pay, up to a maximum cap of £2,083.33 per month

– The gross pay is fully funded by the Government

– Employers will again be responsible for funding any Employer National Insurance or pension contributions associated with the payment to employees

For both scheme options, employers are now allowed to top up employees’ pay if they wish to do so.

The first date that claims can be made in relation to the November pay period is now 8 December 2020, rather than 1 December 2020. All claims made will be subject to checks by HM Revenue & Customs prior to payments being issued.

The Government has now published full guidance online which details whether companies should use the JSSO, JSSC or both and also how employees’ usual pay and hours should be calculated. This is available at: https://www.gov.uk/government/publications/the-job-support-scheme/the-job-support-scheme

However, if you require any assistance with any aspect of the new scheme, please contact our Payroll Team at payroll@kilsbywilliams.com or 01633 810 081