One of the main reasons for the Coronavirus Job Protection Scheme is to ensure as many businesses as possible come out the other side of the coronavirus pandemic. There is a need for businesses to balance the ‘right thing’ for the people with the business’ financial health.
Partner Richard Cranstone explains more:
Government to pay 80% of salary for anyone who would normally have been laid off due to the coronavirus, up to a maximum of £2,500
Employers’ national insurance and minimum pension contributions covered in addition to the 80%/£2,500
Government Online Web Portal opened 20th April
There is a 6 day turnaround, so businesses should claim by 22nd April for cash to cover salaries at end of month
The grant will be included as income for tax purposes
For variable earners, the amount is based on 80% of the higher of the same month’s earnings for the previous year or average from the 19/2020 tax year to February
Furloughed workers cannot job share or carry out part time work. They must be furloughed 100% for minimum of 3 weeks.
The employee must have been on a processed payroll (RTI) by 19th March 2020 (This has been extended from the 28th February as originally stated)
Commission etc can be included in the calculation if written into the employee’s contract
If you would like more information or help regarding furloughing or with business strategy and financial management, please contact us at: [email protected] Contact Us LinkedIn Twitter
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