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22nd April 2020

Coronavirus Job Retention Scheme

The UK government is helping companies pay furloughed employees due to the ongoing coronavirus pandemic. Now UK employers can designate employees as “furloughed workers” and gain access to support from the government to pay part of employee salaries.

Employers of all sizes are eligible for the new job retention scheme, as long as they have a payroll scheme that began on or before 19 March 2020 and have a bank account in the UK. Full and part-time employees must have been part of the PAYE as of 19 March 2020 to be eligible. Employees cannot work for their employer while furloughed. There are some complexities for new employees and those with special circumstances, so be sure to check the HMRC website for details: https://www.gov.uk/coronavirus/business-support

Employers can apply for the Coronavirus Job Retention Scheme on the Gov.uk website. The program currently applies from 1 March to 30 June, but could be extended based on circumstances. Employers must put in writing to their employees that the employees have been furloughed and keep records of the agreement for 5 years. To make a claim, employers need a Government Gateway ID and password, and a PAYE enrolment to access the system. For more guidance from HMRC, click here: https://www.gov.uk/government/publications/coronavirus-job-retention-scheme-step-by-step-guide-for-employers

Payescape can help you manage furloughed employees and the new job retention scheme with HMRC. Talk to us today about simplifying your payroll process, ensuring compliance, and managing employees during this difficult time. Click here to get started: https://payescape.com/#trial

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