FURLOUGH 15 steps to getting it right 1. What is

Transcript:FURLOUGH 15 steps to getting it right 1. What is:
FURLOUGH 15 steps to getting it right 1. What is Furlough? ‘Furlough’ is the process which employers need to put in place in order to be to access the Government’s Coronavirus Job Retention Scheme If you cannot maintain your current workforce because your operations have been severely affected by coronavirus (COVID-19), you can furlough employees and apply for a grant that covers 80% of their usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions (up to the level of the minimum automatic enrolment employer pension contribution) on that subsidised furlough pay. This is a temporary scheme in place for 4 months starting from 1 March 2020, but it may be extended if necessary and employers can use this scheme anytime during this period. It is designed to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy. However, all employers are eligible to claim under the scheme and the government recognises different businesses will face different impacts from coronavirus. 2. Is your business eligible to claim with the CJRS (Coronavirus Job Retention Scheme)? Who can claim? Any entity with a UK payroll can apply, including businesses, charities, recruitment agencies and public authorities. You must have: created and started a PAYE payroll scheme on or before 19 March 2020 enrolled for PAYE online a UK bank account EXCEPT Where employers receive public funding for staff costs, and that funding is continuing, HMRC expects employers to use that money to continue to pay staff in the usual fashion – and correspondingly not furlough them. This also applies to non-public sector employers who receive public funding for staff costs. If you claim while receiving public money for staff costs you are ‘double funding’ and HMRC will not tolerate this. 3.Who can be furloughed? Any of the following can be put on furlough, whether they work full time or part time: employees workers agency workers those on zero-hours contracts apprentices Employers can also furlough those who are temporarily unable to work because: they're 'shielding' (told to stay at home by the NHS because of an underlying health condition) someone in their household is shielding they have childcare responsibilities they're caring for a vulnerable person in their household Who can be furloughed? (cont) The furloughed worker must have been on their PAYE payroll and included