Coronavirus Job Retention Scheme and the Job Retention Bonus

We are halfway through September and this month sees one of the biggest changes to the current Coronavirus Job Retention Scheme (CJRS). Employers now pay 10% of furloughed employees’ wages to make up 80% of their total wages up to a cap of £2,500, with the wage cap being proportional to the hours not worked.

And as previously brought in from 1^st August, employers will continue to pay furloughed employees’ NI and pension contributions.

October 2020 onwards…

As employers will be aware, the CJRS will come to an end on 31^st October.

For October the government will pay 60% of wages up to a cap of £1,875 for the hours the employee is on furlough. Employers will pay ER NICs and pension contributions and top up employees’ wages to ensure they receive 80% of their wages up to a cap of £2,500, for time they are furloughed.

Employers will continue to able to choose to top up employee wages above the 80% total and £2,500 cap for the hours not worked at their own expense if they wish. Employers will have to pay their employees for the hours worked.

Job Retention Bonus

The Job Retention Bonus allows employers to claim a one-off payment of £1,000 for every employee they have previously received a grant for under CJRS and who remains continuously employed throughout to the end of January 2021.

To be eligible, the employee must have received earnings in November, December and January and must have been paid an average of at least £520 per month, a total of at least £1,560 across the three months.

Employers will be able to claim the bonus after they have filed PAYE information for January 2021, and the bonus will be paid from February 2021.

What you need to now

If you intend to claim the Job Retention Bonus, you must:

• Ensure all employees records are up to date
• Accurately report employees’ details and wages on the Full Payment Submission (FPS) though the Real Time Information (RTI) reporting system
• Make sure all CJRS claims have been accurately submitted

Disclaimer - All information in this post was correct at time of writing.