What is JSS?
- A new job protection scheme introduced to businesses who have been negatively impacted by Covid-19 and need more time to recover.
- It will run for 6 months, starting 1 November 2020.
- The cost of wages will be split between the employer, the Government (through wage support) and the employee (through wage reduction).
- The employee will have to work at least 33% of their contracted hours, after 3 months the Government may increase this threshold.
- The Government will pay up to a third of hours not worked, up to £697.92 a month per employee.
- The Employer will also pay a third.
- Employers using JSS will able be able to claim the Job Retention Bonus if they meet the eligibility criteria.
Who is eligible?
- All employers with a UK bank account and a UK PAYE scheme.
- Large companies will have to meet the criteria of a financial assessment test to prove that Covid-19 has negatively impacted their turnover.
- SMEs will be exempt from a financial assessment test.
- Employees must be on an employer’s PAYE payroll on or before 23 September 2020.
How can you claim?
- Applications for claims will be open from December 2020 and will need to be completed via Gov.uk website.
- Grants will be paid in arrears meaning that a claim can only be submitted in respect of a given pay period after payment to the employee which has been reported to HM Revenue & Customers via a RTI return.
Example: (extracted from Gov.uk)
- Beth normally works 5 days a week and earns £350 a week. Her company is suffering reduced sales due to coronavirus. Rather than making Beth redundant, the company puts Beth on the Job Support Scheme, working 2 days a week (40% of her usual hours).
- Her employer pays Beth £140 for the days she works.
- And for the time she is not working (3 days or 60%, worth £210), she will also earn 2/3, or £140, bringing her total earnings to £280, 80% of her normal wage.
- The Government will give a grant worth £70 (1/3 of hours not worked, equivalent to 20% of her normal wages) to Beth’s employer to support them in keeping Beth’s job.
For more details please don’t hesitate to contact us, or link on the following link https://www.gov.uk/government/publications/job-support-scheme