Job Support Scheme (JSS)
The Coronavirus Job Retention Scheme (CJRS) will end on 31 October 2020 and is being replaced with the Job Support Scheme (JSS) on 1 November. The JSS will run for at least 6 months to 30 April 2021 and the Government will review the terms of the scheme in January 2021.
The CJRS was designed to retain as many jobs as possible during the initial months of COVID-19. The new JSS is intended to support jobs in businesses that continue trade but have reduced demand and support jobs in businesses who are legally required to close their premises due to Government restrictions.
Businesses Facing Reduced Demand (JSS Open)
Businesses who are NOT legally required to close their premises can make a grant claim for employees under the JSS Open if they meet the following criteria:
- The employee must have been employed and included on a RTI Full Payment Submission to HMRC at some point between 6 April 2019 and 23 September 2020
- The employee must have been in the business’ employment on 23 September 2020
- The employee works a minimum of 20% of their usual hours
- The employer pays the employee as normal for the hours worked
In addition to being paid for the hours worked, the employee will also receive their normal pay for 66.67% of hours not worked, up to a maximum of £1,541.75. The 66.67% additional pay will be covered by contributions from both the employer and the Government via the JSS Open.
The employer will be required to pay 5% of the hours not worked, up to a maximum of £125 per month. The Government will pay (via a grant to the employer under the JSS Open) the remaining 61.67% of the hours not worked, up to a maximum of £1,541.75 per month. The employer can then voluntarily pay more the employee if they wish.
This will ensure employees who earn £3,125 a month or less will receive at least 73% of their normal wage.
Businesses Who Are Legally Required To Close (JSS Closed)
Businesses who are legally required to close their premises as a direct result of coronavirus restrictions can make a grant claim for employees under the JSS Closed if they meet the following criteria:
- The business premises are legally required to close due to restrictions
- The employee cannot work due to the above restriction
- The employee must have ceased to work for at least 7 consecutive calendar days
- The employee must have been employed and included on a RTI Full Payment Submission to HMRC at some point between 6 April 2019 and 23 September 2020
- The employee must have been in the business’ employment on 23 September 2020
The employee will be paid 66.67% of their normal pay, up to a maximum of £2,083.33 per month, by the Government via the JSS Closed. The employer can then voluntarily pay more the employee if they wish.
Claiming A Grant
Businesses will be able to make a claim under the JSS from 8 December 2020, dating it back to 1 November. The employee must have been paid the full amount before a claim is made. Neither the employer nor the employee needs to have benefited from the CJRS to be eligible for the JSS. Employers cannot claim both JSS Open and JSS Closed in respect of a single employee for the same day.
The grant does not cover employer National Insurance contributions or pension contributions. These contributions remain payable by the employer.
CFW Services
CFW has a dedicated payroll department that has continued to support clients throughout the COVID-19 pandemic. We have prepared CJRS claims for our clients using our payroll services and we have provided support and advice for all our clients on the CJRS and other COVID-19 financial support measures. We will continue to provide claim and support services for our clients under the JSS.
Please get in touch should you require any support or advice on the JSS or any other payroll matter.
UK Government guidance on the Job Support Scheme can be found here.
Links
Our previous updates can be found on Facebook and LinkedIn or on our website blog.
A UK Government general COVID-19 support website can be found here. It contains guidance on all matters pertaining to the Coronavirus.
