31 October

JOB SUPPORT SCHEME(JSS) Amended 22nd Oct, JSS(Open) & JSS (Close) options

Government help for businesses who are suffering from a Business Downturn due to Covid 19 restrictions (Tier 2) or If they have been told to close temporarily (Tier 3)

Active from 1st November

JSS (Open)-Business is open but are working in Restriction/Less work hours (Tier 2)

Employers can access JSS (Open) if their employees work at least 20% of their normal working hours with your client covering the wages for those worked hours – rather than 33% as it was before. For the hours not worked, your client will be asked to contribute 5% of employees’ wages whilst the Government will contribute 61.67% of wages (for hours employees do not work), to a monetary cap of £1,541.75 per month per employee).

* The minimum hours requirement is a key component of the JSS Open. If you don’t have enough work to provide even 20% of an employees' usual hours, you will not be able to put them into this scheme.

* Training hours count towards 20% of the employee’s hours. The policy paper has to confirm that any hours spent in training and paid for by the employer at full pay will count towards 20% of their usual hours.

JSS (Closed)- Government has enforced to close the business temporarily(Tier 3)

If employers find that they must close their business due to any kind of lockdown measures and their employees do not work for at least seven calendar days, the Government will pay two-thirds of each employee’s salary, up to a maximum of £2,083.33 a month per employee. In this case, Employers will not be required to contribute towards staff wages but will have to cover National Insurance Contributions and pension contributions where necessary.

Which Business Sectors Can access JSS? - All Viable Jobs that can be Protected

JSS is not limited to any sectors or settings. It is open to all employers with eligible employees, a UK bank account, and a UK PAYE scheme (with the exception of fully publicly funded bodies).

*JSS Open will only be available to larger employers (with 250 or more employees) if they meet a financial impact test. SMEs will not have to meet any financial tests.

Which employees can we put on the scheme?

Employees must have been on your PAYE payroll on or before 23 September 2020. This means a Real-Time Information (RTI) submission notifying payment to that employee to HMRC must have been made on or before 23 September 2020.

Under the JSS (Open), the employee must work at least 20% of their usual hours.

Under the JSS (Closed) the employee must have stopped work altogether.

What about National Insurance Contributions and employer pension contributions under JSS?

The grant will not cover Class 1 Employer NICS or pension contributions, although these contributions will remain payable by the employer. The employer will need to pay these contributions in respect of both the government top-up and the employer's top-up, as well as in respect of pay for hours worked.

£1,000 Job Retention Bonus while also claiming under the JSS?

Yes, Employers can claim your £1,000 bonus for bringing a furloughed employee back to work in addition to claiming ongoing support for that employee under the JSS

* To qualify for the bonus, the employee would need to remain continuously employed through to the end of January 2021 and earn at least £1,560 (gross) during that period. Grants from the JSS will count towards meeting the lower earnings limit.

Employer Compliance

Inform your employees about the Government support available from 1st Nov If hours are reduced, it must be agreed with the employee before processing JSS (Open) JSS (closed) compliance must be also disclosed to employees with an agreement signed before a claim for affected areas.

Please Contact Oasis Accountants Managers for detailed guidance and compliance.

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