This information was correct as at 28 October 2020
The scheme will provide grants to businesses impacted by Covid-19 and aims to protect jobs by keeping workers in employment, while recognising it might not be possible for businesses to have all staff return to normal working hours.
Employees must work a minimum of 20% of their normal hours and as the employer, you must continue to pay them for those hours worked.
The cost of hours not worked is then split between you, the Government and your employee, through wage reduction.
So, an employee working the minimum 20% of their normal working hours will receive no less than 86% of their normal pay, and any additional hours worked by the employee will off-set this reduction.
The scheme offers the flexibility to change your employees’ working hours each month, and you can cycle them on and off the scheme, giving you the opportunity to rotate staff members if desired.
However, you’ll need to agree new working arrangements with your employees, update employment contracts and notify each of your employees in writing. HMRC may request this in future.
Your automatic enrolment duties will continue to apply as normal, and you’ll need to continue paying your pension contributions based on the lower salary your employees will receive, including the amount paid by the Government.
Our online dashboard will notify you of any upcoming re-enrolment and re-declaration duties, helping you stay on track.
If you’re not able to have all your employees return to their normal working hours, you can apply for the JSS grant, as long as you have a UK bank account and UK PAYE scheme.
If your business is a larger business, you’ll have to meet a financial assessment test, showing that turnover is lower than it was before Covid-19. If it’s small or medium sized this won’t be required.
You can claim for any employees added to your payroll on or before 23 September 2020.
You’ll be able to make a claim online through gov.co.uk from December 2020.
Grants will be paid in arrears, on a monthly basis, after payment to the employee has been made and reported to HMRC.