Job Support Scheme – JSS

Update 4th November 2021:

JSS Continues to be Placed on HOLD UNTIL CJRS IS OVER.

Update 26th October 2021:

Introduction

There have been further developments to the Job Support Scheme (JSS) since our last update on the 7th October (below).

In a nutshell

• Employees it's still paid a minimum of 73% of the usual salary when small amount of time working,
• Employers will pay less, and the government pays more.
• A temporary written agreement will have to be ready for staff you are planning to placed on the JSS.
• The government pays 66.67% of the employee's unworked salary should their primary work premises have to close.

The details

The first key change announced this week is the fact that nowadays there are two flavours from the JSS scheme; JSS (Open) and JSS (Closed)

• JSS (Open) pertains to businesses trading throughout the period November 2021 to April 2021 inclusive
• JSS (Closed) applies where businesses may have to legally close throughout the same period, due to coronavirus restrictions place in place

The other major change, and something that will have in all probability the biggest financial impact for employers, may be the contribution percentage.

Previously, the proposal was that employers would pay employees for any third of the unworked time, with the government matching this with a further third up to and including monthly cap.

This resulted in the total paid a part of any unworked time was two thirds or 66.67%

The new proposal will see employers only spending 5% of any unworked time, using the government contributing the remaining 61.67%, up to and including monthly cap of lb1541.75

Furthermore, employees will now only have to work on least 20% of their usual hours, rather than the previous 33.3% in order for employers to incorporate them in almost any JSS claim.

One other extremely important caveat announced now; employers must put in place an itemized temporary working deal for staff who will be on small amount of time working.

The agreement must cover no less than seven consecutive calendar days, it must be on paper, and the date from the time the JSS claim can start is the later date of either stated around the agreement, or once the employee begins their small amount of time working.

HMRC have confirmed the agreement must be available for inspection should they request to determine it, so please ensure you confer with your HR people to arrange this.

If you aren't lucky enough to get have your personal HR department or advisor, problems in later life HMRC can make available some kind of template to download and customise in the coming weeks.

All other criteria and rules of the JSS (Open) scheme remain unchanged – at the moment.

As your PAYE agents, the expectation is the fact that we'll still upload claims on your behalf, in the event you wish, but please contact the payroll department with any queries in regards to this.

It is envisaged that the first JSS claims is going to be uploaded following the 8th December, presumably once the revised gateway portal is updated. Please bear this mind whilst awaiting your JSS reimbursement.

As before using the furlough scheme, you will be likely to spend the money for monies to staff before reclaiming from HMRC.

You will also have to fund the employers a part of your NI liabilities, as well as the employers pension contribution. These will not be contained in any JSS claims.

Finally, the JSS (Closed) scheme will kick in where businesses need to legally close or curtail their trading as a result of any future lockdown or local/national restrictions.

In these cases, businesses don't have any choice but to either send some or all of their staff home for time.

It is envisaged this will mainly modify the hospitality and leisure sector.

Under the scheme, the federal government will pay two thirds of wages to employees who cannot work, up to and including monthly cap of lb2083.33

In the approaching couple of weeks, further fine tuning of both JSS schemes will no doubt take place.

We will be releasing a JSS Q&A once all the processes are finalised.

In the meantime, the present furlough scheme is ending this month, and reimbursement of October furlough payments has reduced to 60%

Remember too that there will be a job retention bonus of lb1000 per furloughed employee, payable between February and March 2021, who're still employed as well as on the payroll as at the 31st January 2021

Update 7th October 2021:

The Job Retention Scheme (JRS) continues into October for the final month.

The reclaim percentage will reduce further in October to 60%; which means that whilst furlough payments to staff continue at 80%, you will have to satisfy the price of the rest of the 20%

Looking ahead to November onwards, a new scheme continues to be announced that will replace the JRS scheme; The task Support Scheme (JSS).

It will run for a period of 6 months, with a government overview of the scheme after month 3.

The basic premise from the JSS is to pay staff a minimum of 77% of their normal salary, on the basis they have been put on short time employed by at least a third of their usual contractual hours

This will be part financed through the employer, with the government also making a contribution.

Eligible staff will have to be working a minumum of one third of the normal contractual hours, and being paid the relevant pro-rated salary by the employer

The Government will provide payment for a third of the remaining 'unworked' or lost time up to a maximum cap of lb697.92 per month

Employers should also do the same, but with no monthly cap

Be conscious that the federal government aren't literally paying a third of the salary, but a third from the remaining time not worked

Example:

Dave's full-time salary is lb1500 per month

He continues to be small amount of time working at 2 out of 5 days per week, earning lb600, and hence satisfying the main one third minimum working threshold

His employer now needs to pay a further third of Dave's lost time, with the Government essentially matching the payment with another third

One third x (lb1500 – lb600) = lb300 paid by the employer

The Government chips in another lb300

Dave's total payment for the month is (lb600 + lb300 + lb300) = lb1200

Total salary paid by Dave's employer = lb900

There are a few caveats to think about prior to deciding to partake within the JJS scheme, and which of your staff to incorporate;

1. All companies are permitted to join the scheme, but HMRC would expect those businesses claiming are experiencing lower turnover, and are not making capital distributions such as dividend payments or share buybacks. Information on the exact criteria are sketchy at the moment. HMRC have said there won't be any financial assessments for SME's, but I'd suspect you will see some sort of audit process going on behind the curtain.
2. Eligible staff will need to have been in the payroll before 23rd September, and included on the RTI submitted by that date. In reality, what this means is any staff who commenced in August in the latest can be included in the scheme; most September RTI's are not submitted until month end, which will exclude September starters by default
3. Any employers and staff who aren't part of the current furlough scheme are eligible to use the JSS scheme, subject to the above criteria. The JSS is a new scheme and isn't connected to the JRS furlough scheme.

Keep an eye on this post for more updates as and when they are released.

Update 24th September 2021:

Under the Scheme, for just about any employees who work at least 1 / 3 of their usual working hours, the Government will provide a grant worth 1 / 3 of the employees' pay for the rest of the hours, limited to lb697.92 per month.

• Under the scheme, the government will subsidise the pay of employees who are working less than normal hours because of lower demand
• It will affect staff who are able to work at least a third of their usual hours
• Employers will pay staff for the hours they do work
• For the hours employees can't work, the federal government and also the employer will each cover 1 / 3 of the lost pay
• The grant will be limited to lb697.92 per month
• All medium and small sized businesses will be eligible for the scheme
• Larger business is going to be eligible if their turnover has fallen throughout the crisis
• It will be available to employers over the UK even when they haven't yet used the furlough scheme
• The scheme will run for 6 months starting in November

For example, an employee working only 40% of the hours will still receive 80% of the usual wages, distributed the following:

• 40% from the usual wages is paid through the employer as purchase working 40% of their normal hours;
• 20% (1 / 3 from the remaining 60% of wages) is going to be covered through the government via a grant underneath the Job Support Scheme;
• 20% (calculated exactly the same way because the Government Grant) will be paid through the employer under the Job Support Scheme.

The Job Support Scheme will run from 1st November until the end of April 2021.

The Scheme can be obtained to any or all UK Businesses, including people who haven't previously used the Job Retention Scheme