Furlough Scheme Ending in September
The furlough scheme has protected more than 11 million jobs since early 2020, but with most businesses opening back up the scheme is set to expire in September. The government has not announced any plans to extend the furlough beyond September, so now is the time to prepare for the changes.
Businesses have been contributing 10% for furloughed employees but will now have to begin contributing 20% in August and September. The monthly limit of £2500 will not change for employees, but employers will have to pay more to continue the furlough scheme. As more businesses open up and restrictions lift on 19 July, the government is hoping business owners will bring employees back to work full time.
Certain industries like hospitality have been hardest hit, with many restaurants closed or at limited capacity, so the hope is that as the economy opens up so will the need for workers. There could potentially be a slight increase to unemployment if businesses can’t afford to bring workers back full-time.
If your payroll has been affected by the changing furlough requirements and extensions, you are not alone. More than 70% of payroll professionals have reported errors and incorrect payroll calculations because of the furlough scheme and ongoing changes. As the scheme expires, it will bring more challenges for payroll teams.
We can help simplify your payroll process and ensure compliance with the latest changes. Our cloud-based payroll platform gives you real-time access to payroll, automatically updates with new changes, and provides direct filing with HMRC. We have a team of CIPP-certified payroll experts to help when questions come up to help you ensure compliance for your payroll operations. Talk to us today to get started – click here to learn more