Many employers will be anxious about the ending of the Coronavirus Job Retention Scheme on the 31 October 2020. To help employers the government will be introducing a new Job Retention Bonus. This will be paid to employers who retain staff in meaningful employment after the current furlough scheme end.
The employer will receive a single payment of £1000 per employee they retain and who has been previously furloughed. The employee must continue to be retained until the 31 January 2021. To qualify the employee must have an average wage of £520 a month between the relevant period of the November 2020 and 31 January 2021. The Job Retention Bonus will be paid to the employer in February 2021 following the submission of PAYE in January 2021.
Real time information
The scheme will be made available to all employers including umbrella companies and recruitment agencies. Employers must pay and submit PAYE correctly and on time to comply with the Real Time Information system. PAYE should be enrolled and managed online. The employer must also have a UK based bank account for the payment.
The scheme comes with a warning from HMRC that they will suspend payments where they have concerns about fraudulent claims. Payments will be paid once detailed enquires have been undertaken by HMRC.
TUPE
The scheme will cover new employers regarding employees who have transfer to them under TUPE or the PAYE business succession rules. A claim may also be possible if there is a transfer from a liquidator. In this case TUPE must have applied had it not been for the employee being placed in compulsory liquidation. Employees who transfer after the 31 October will not be covered by the scheme.
The scheme will ensure any employee on parental leave and who returns after the 10 June will be eligible to claim if they also meet all the other criteria to make a claim. Any military reservist who return from mobilisation after the 10 June will be eligible provided, they meet all the other eligibility criteria. Fixed term contract employees will also be covered by the scheme provided the meet the eligibility criteria. Employers will be able to extend or renew contracts without affecting their claim.
Employer are advised now to prepare the necessary employee records and correctly use the Real Time Information (RTI) reporting system.
Should you need any help with this matter contact Quest for further advice and guidance on 01455852028.
