Employers are facing many changes to the furlough scheme over the next several months. Ensuring compliance with new furlough changes can be complicated, but here is a quick guide to the changes:
Beginning 1 August, employers are now required to contribute to National Insurance and Pension Contributions. The government is paying 80% of wages for employees, and employers can choose to provide additional salary to employees, but they must now also contribute to insurance and pension each month.
In September, the government will reduce the amount paid to employees, paying 70% of wages with a cap of £2187.50 per month. Employers will now have to contribute 10% of employee salaries, in addition to the National Insurance and pension contributions, to ensure employees are being paid 80% of their salaries up to £2500 per month.
Starting on 1 October, the government will contribute 60% of employee wages, so employers will have to increase to 20% of employee salaries plus National Insurance and pension contributions.
The challenges facing payroll teams with these evolving changes to the furlough scheme is unprecedented. It will be difficult to maintain payroll compliance and ensure employees are paid properly as well as contributions to National Insurance and pensions. Payescape has created easy-to-use payroll technology that automates changes to payroll regulations to keep your payroll compliant.
Our CIPP-certified staff is here to help when questions come up and can provide expert advice and audits to help you make necessary changes. Talk to us today about challenges you are facing and we can identify integrated payroll and HR solutions that work for your business. Click here to learn more
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