CIPP Payroll: need to know 2019-20

In order to access the scheme, employers will need to discuss the need to reassess impacted employees as ‘furloughed workers’, and to have discussions with those affected. For employers, changing the status of an employee remains subject to existing employment law and contract dependant, may be subject to negotiation. Employers will then be required to submit information relating to furloughed employees and their earnings to HMRC via a new online portal. This has not been set up yet but will be available in due course. Employees should not complete any work for their employers throughout the time in which they are furloughed. This will enable employers to claim a grant of up to 80% of their wages for employee employment costs, up to a cap of £2,500 per month. Workers are still classed as being employed for the period in which they are furloughed, and employers could opt to fund the differences between the payment from the government and their salary, but there is no mandatory requirement for them to do so. Therefore, if employee pay is reduced as a result of these changes, they may be eligible for support through the welfare system, inclusive of Universal Credit.

The Coronavirus Job Retention Scheme is expected to run for a period of at least three months, from 1 March 2020, but it will be extended if necessary.

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Proposed amendment to Coronavirus Bill – ‘Statutory Self - Employment Pay’ 24 March 2020

In order to support freelancers and self-employed people through the outbreak of coronavirus, the House of Commons Public Bill Committee has put forward an amendment to the Coronavirus Bill, with the title ‘Statutory Self-Employment Pay’. Should the amendment be accepted, it will mean that the government will ‘top up’ the earnings of self-employed people and freelancers up to 80% of their monthly net earnings, averaged over the previous three years, or £2,917 per month. The figure payable will be whichever is the lower of the two.

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Enforcement of the gender pay gap reporting deadlines suspended for this year 25 March 2020 The Government Equalities Office (GEO), along with the Equality and Human Rights Commission (EHRC) have confirmed that, in response to the outbreak of coronavirus, the enforcement of the gender pay gap reporting deadlines will be suspended for the current reporting year, 2019-20.

There is no expectation on employers to provide their gender pay gap data.

In a joint statement, Minister for Women & Equalities, Liz Truss, and EHRC Chair, David Isaac, said:

“We recognise that employers across the country are facing unprecedented uncertainty and pressure at this time. Because of this we feel it is only right to suspend enforcement of gender pay gap reporting this year.

26% of expected gender pay gap reporters, which equates to 3000 employers, have already submitted their data via the Gov.UK website for the tax year, and the GEO will continue to provide support to employers in reporting their data should they wish to do so.

Under normal circumstances, the EHRC can investigate employers who fail to report their gender pay gap data, and they could potentially be presented with an unlimited fine if court action dictates it.

Gender pay gap reporting legislation, introduced in 2017, ordinarily requires businesses with 250 or more employers to publish statutory calculations on an annual basis, to demonstrate how large the pay gap is between their male and female employees. The deadline for reporting that data would have been 30 March 2020 for public sector bodies, and 4 April 2020 for private companies.

The Chartered Institute of Payroll Professionals

Payroll: need to know

cipp.org.uk

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