employer. It also considers that, for claims commencing on, or after, 1 August 2020, employers no longer have the option to claim a grant for up to the statutory minimum automatic enrolment (AE) employer contribution.
For individuals who are working for some of the hours in a claim period but are also being furloughed for a proportion of hours in July 2020, employers will need to calculate the total pay, and pay this via the normal payroll process. Both employee and employer pension contributions must be calculated on this total amount of pay. To illustrate, if an employee earned £100 for hours worked and adjusted furlough pay of £50 for furloughed hours within the claim period, then £150 must be processed through payroll, and pension contributions under the employer’s pension scheme rules must be based on the full £150. Employers will need to be aware of the amount of furlough pay that is included in the total pay for the pay period as it is only on that amount, that they may claim a grant for up to the statutory minimum employer pension contribution. To use the previous example, employers will only be able to claim a grant of up to the statutory minimum AE employer contribution on £50 as that is the amount of pay that relates to furloughed hours.
For claims starting on or after 1 August 2020, employers no longer have the option to claim for the employer pension contribution figure on furlough pay.
Employers must continue to pay employees who are on furlough the lower of 80% of their reference wage or salary, or £2,500. The government will still fund this 80% for claims relating to August, but will fund 70% in September 2020 and 60% in October 2020. Employers will be required to ensure that employee pay remains at 80%, or £2,500, if capped, so will need to contribute in September and October to bring employee pay up to 80%. Pension contributions should be calculated and paid across on the full amount of pay but employers cannot claim any of this back through the Coronavirus Job Retention Scheme (CJRS). Employers will be required to pay more than the statutory minimum contribution if their worker is working part-time during the furlough period, for July 2020 only. Where this is the case, any contributions over the AE statutory minimum contribution will not be funded by the CJRS. Employers should, however, carry on making the correct contributions due under the scheme, and so will be required to pay a portion of the pension contribution themselves.
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The NHS Test and Trace service and its effect on pay 18 June 2020
The NHS test and trace service ensures that anyone symptomatic of coronavirus can quickly determine whether or not they have the virus, and also works to trace recent contacts of anyone who tests positive for coronavirus, and notifies them to self-isolate if necessary, to stop the spread of the virus. The Statutory Sick Pay (General) (Coronavirus Amendment) (No. 4) Regulations 2020 were laid to come into force from 28 May 2020, and mean that those who have been contacted via a relevant notification, and advised to stay at home and self-isolate, will be deemed as incapable of work, and therefore entitled to Statutory Sick Pay (SSP).
The public must take certain steps in order for the test and trace service to be a success, and they include:
• Individuals self-isolating if symptomatic of coronavirus along with other members of their household, and ordering a test to determine whether or not they have coronavirus • Where individuals test positive for coronavirus, they must promptly share information about recent contacts through the NHS track and trace service, so that those people can be contacted and potentially advised to self-isolate • If an individual has been in close contact with someone who had coronavirus, they must self-isolate if the NHS test and trace service advises them to do so
The guidance is only applicable in England, and different rules may apply in the devolved nations.
If an individual has coronavirus, they will be contacted via text message, email or phone and they will be provided with a link to the NHS test and trace website. They should then create a confidential account where they can disclose information about recent close contacts.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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