CJRS Changes & Flexible Furlough 15th July 2020 Welcome CJRS Changes & Flexible Furlough: What you need to know to today’s webinar Presenters Questions & Answers Karen Bennett Rachel Hynes Victoria Clarke Paul Byrne Laura Murphy Victoria Clarke Head of Sales Marketing Executive Training & Support Managing Director HR Manager & Training & Support and Marketing at BrightPay Manager at BrightPay at BrightPay Employment Law Expert Manager at BrightPay 1
CJRS Changes & Flexible Furlough 15th July 2020 CJRS Changes & Flexible Furlough: Questions Recording Email What you need to know Handouts Resources Employers can claim for: Furlough Scheme Wind Down: 80% of usual monthly wage costs A Timeline of Changes (capped at £2,500) A Timeline of Changes Associated Employer National Insurance contributions As the scheme winds down, employers will need to contribute to employees’ wages over the coming months. Minimum auto enrolment employer pension contributions 2
CJRS Changes & Flexible Furlough 15th July 2020 August 2020 September 2020 Government will pay 70% of wages (up Government will continue to pay 80% of to £2187.50) wages (up to £2,500) A Timeline of A Timeline of Changes Changes Employers must pay employer NIC & employer pension contributions Employers are required to pay employer NI contributions & employer pension Employers are required to pay 10% of contributions wages to make up the 80% (up to £2,500) October 2020 Employers still have the option to top up employee wages above the 80% total Government will pay 60% of wages (up and £2,500 cap to £1,875) A Timeline of A Timeline of After 31 st October, the government Changes Changes Employers must pay employer NIC & contribution will finish and the scheme will employer pension contributions come to an end Employers are required to pay 20% of wages to make up the 80% This scheme’s gradual wind down is (up to £2,500) more generous than expected 3
CJRS Changes & Flexible Furlough 15th July 2020 All businesses can avail of a Job Retention Bonus for each employee Flexible Furlough - Employees Returning brought back from furlough to Work Part-Time Job Retention £1,000 per employee if brought back Bonus Scheme from furlough for at least 3 months The government has changed the scheme to become more flexible with employees returning to work part-time. Employee must earn at least an average of £520 per month within the 3 month period Before July, furloughed employees could The government will continue to pay not undertake work for or on behalf of 80% / 70% / 60% of wages for the hours the organisation not worked Flexible Flexible From 1st July, businesses have the Employers required to pay employees for Furlough Furlough flexibility to bring employees back to the hours they do work work When working 2 days – employee must be Employers will still be able to claim under paid as normal for 2 days & subsidy will the CJRS for hours not worked cover the other 3 days 4
CJRS Changes & Flexible Furlough 15th July 2020 Employers will decide their employee’s From 1 July, employers can only claim for hours & shift patterns employees who have previously been furloughed Flexible Flexible Any changes to the working hour The employee must have been furloughed arrangements must be confirmed with the Furlough Furlough for at least 3 consecutive weeks between employee in writing 1 March and 30 June If employee not returning to work part Exception – employees returning from time, they can continue to claim the grant statutory parental leave for their full hours Additional Resource Returning from statutory parental leave after 10 June – can furlough for the first Calculating Flexibly Furloughed time, provided: Employee’s ‘Usual Hours’ Flexible Previously submitted claim for any other employee Furlough Parental leave started before 10 June Employers need to submit data on flexibly furloughed employee’s and returned after 10 June usual hours, actual hours worked, and furloughed hours. The employee was on your PAYE payroll on or before 19 March 2020 5
CJRS Changes & Flexible Furlough 15th July 2020 If employee is flexibly furloughed you Follow HMRC's guidance for those who need to record & submit: work variable hours if: The employee is not contracted to a The employee’s usual hours Calculating Calculating fixed number of hours The actual hours they worked ‘Usual Hours’ ‘Usual Hours’ The employee’s pay depends on the Their furloughed hours number of hours worked Follow HMRC’s guidance for those who If employee is fully furloughed work a fixed number of hours if neither you do not need to work out usual Additional of these apply hours and furloughed hours Resource a) Fixed number of hours & whose pay is a) Fixed number of hours & whose pay is not dependent on hours worked not dependent on hours worked 1. Start with the hours your employee was Need to calculate the usual hours for each contracted for at the end of the last pay period Calculating Calculating pay period (or part pay period) that falls ending on or before 19 March 2020. ‘Usual Hours’ ‘Usual Hours’ within the claim period 2. Divide by the number of calendar days in the repeating working pattern, including non- working days. If employee with fixed hours was on 3. Multiply by the number of calendar days in the annual, sick leave or statutory leave, pay period (or partial pay period) you are claiming for. calculate as if leave was not taken 4. Round up to the next whole number if the outcome isn’t a whole number. 6
CJRS Changes & Flexible Furlough 15th July 2020 b) Where pay varies by the amount of Employers are required to submit data on: time worked The employee’s usual hours Need to calculate the usual hours based Calculating Calculating on the higher of either: The actual hours they worked ‘Usual Hours’ ‘Usual Hours’ Their furloughed hours The average number of hours worked in the 19/20 tax year Number of furloughed hours will be the The corresponding calendar period in difference between their usual hours and the 19/20 tax year the hours actually worked Additional Resource BrightPay provides two independent tools to assist users who have furloughed BrightPay’s Updated employees: CJRS Claim Report BrightPay’s A Furlough Pay Calculator CJRS Claim Report A CJRS Claim Report BrightPay’s CJRS Claim Report has been updated to support flexible furlough and other changes to the scheme. The Claim Report has been updated to support flexible furlough and other changes to the CJRS scheme 7
CJRS Changes & Flexible Furlough 15th July 2020 Furlough periods are treated as ending on Key Changes to 30th June and restarting under the new scheme on 1st July Making a CJRS Claim Making a CJRS Claim Separate claims need to be submitted for days in June and days in July The rules in relation to making a CJRS claim have changed from 1 st July 2020. Even if employees are furloughed continuously, this is still the case Consider your payroll frequency when deciding on your claim period Claim periods ending on or before 30 June must be made by 31 July Making a Making a Claim periods must start and end within the same calendar month CJRS Claim CJRS Claim Claim periods starting after 30 June can be made from 1 July Pay periods that span two calendar months must be broken down into two separate claims 8
CJRS Changes & Flexible Furlough 15th July 2020 It’s possible to make more than one claim You cannot make more than one claim in each month during a claim period All claims must last at least 7 days unless Making a Making a Where furloughed continuously, the claim your claiming for the first few days or last period must follow on with no gaps CJRS Claim CJRS Claim few days of a month between the dates These are known as ‘orphan days’ and in Can only claim for employees who have this instance a claim period can be shorter previously been furloughed for at least 3 than 7 days consecutive weeks The no. of employees you can claim for You should receive the payment from cannot exceed the max no. of employees HMRC within 6 working days claimed for previously Making a Making a If you made an error resulting in an An exception is where an employee is overclaimed amount, you can let HMRC CJRS Claim CJRS Claim returning from statutory parental leave know when making next claim after 10 June If you made an error resulting in an In this instance, the no. of employees underclaimed amount, you need to you’re furloughing for the first time can be added to previous maximum contact HMRC to amend the claim 9
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