• Employees will be able to cycle on and off the scheme and do not have to be working the same pattern each month, but each short time working arrangement must cover a minimum period of seven days
What does the grant cover? •
For every hour not worked by the employee, both the Government and employer will pay a third each of the usual hourly wage for that employee. The Government contribution will be capped at £697.92 a month • Grant payments will be made in arrears, reimbursing the employer for the Government’s contribution. The grant will not cover Class 1 employer NICs or pension contributions, although these contributions will remain payable by the employer • “Usual wages” calculations will follow a similar methodology as for the CJRS. Full details will be set out in guidance shortly. Employees who have previously been furloughed will have their underlying usual pay and/or hours used to calculate usual wages, not the amount they were paid whilst on furlough • Employers must pay employees their contracted wages for hours worked, and the Government and employer contributions for hours not worked. The expectation is that employers cannot top up their employees’ wages above the two-thirds contribution to hours not worked at their own expense
What does it mean to be on reduced hours?
• The employee must be working at least 33% of their usual hours • For the time worked, employees must be paid their normal contracted wage • For time not worked, the employee will be paid up to two-thirds of their usual wage • Employees cannot be made redundant or put on notice of redundancy during the period within which their employer is claiming the grant for that employee
How can I claim?
• The scheme will be open from 1 November 2020 to the end of April 2021. Employers will be able to make a claim online through Gov.uk from December 2020. They will be paid monthly • Grants will be payable in arrears meaning that a claim can only be submitted in respect of a given pay period, after payment to the employee has been made and that payment has been reported to HMRC via an RTI return
HMRC checks
• HMRC will check claims. Payments may be withheld or need to be paid back if a claim is found to be fraudulent or based on incorrect information. Grants can only be used as reimbursement for wage costs actually incurred • Employers must agree the new short time working arrangements with their staff, make any changes to the employment contract by agreement, and notify the employee in writing. This agreement must be made available to HMRC on request • The intention is that employees will be informed by HMRC directly of full details of the claim • Included in the Factsheet, HMRC provide a detailed example, along with a table which shows percentages in relation to the government funding, based on hours that have been worked.
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Factsheet on the extended SEISS published 28 September 2020
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
Page 139 of 590
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