The guidance also reiterates the fact that furloughed employees who are made redundant will have their redundancy pay calculated on the basis of their normal wage, and not the reduced furlough amount.
A new example has been provided to advise claimants how to proceed where an employee with fixed pay has worked sufficient overtime in tax year 2019-20 to have a significant impact on the amount that can be claimed.
HMRC has included information within the pages to show that employers should only contact HMRC in relation to providing National Insurance (NI) numbers where the employee has a temporary number, or genuinely does not have one at all, e.g. if they are under the age of 16.
In addition to all of the other updates, within the guidance HMRC has repeated the importance of submitting correct data when making claims.
The guidance pages can be accessed below:
Check if your employer can use the Coronavirus Job Retention Scheme Check which employees you can put on furlough to use the Coronavirus Job Retention Scheme Calculate how much you can claim using the Coronavirus Job Retention Scheme Claim for wages through the Coronavirus Job Retention Scheme Examples of how to calculate your employees’ wages, National Insurance contributions and pension contributions
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HMRC provides examples of calculations of what businesses can reclaim for flexibly furloughed employees in September and October 19 August 2020 HMRC has updated the guidance page which provides a variety of examples of the amounts that employers can reclaim for any employees that they place on flexible furlough, and the associated calculations. There are now detailed examples of calculations for both September and October, as the amount employers can claim drops to 70% initially and then 60% in October, before closing at the end of that month. Since the start of August, employers have no longer been able to reclaim the costs associated with employer National Insurance (NI) and pension contributions for any hours that employees spend on furlough, and employers have had to pay this themselves.
The examples detail how much the employer must pay out to the employee in scenarios in both September and October, and also the figure that they may claim back through the Coronavirus Job Retention Scheme (CJRS).
When the scheme closes at the end of October, employers who bring employees who were previously on furlough back to work, and keep them in employment between November 2020 and January 2021, and pay them at least £520 per month on average during that time, will be eligible for a one-off payment of £1,000 for each eligible employee. This is referred to as the Job Retention Bonus. HMRC has reminded businesses that they need to ensure that their CJRS claims have been submitted correctly and any amendments made, if required, prior to claiming the Job Retention Bonus.
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Coronavirus Job Retention Scheme guidance update 19 August 2020
On the various information pages relating to the Coronavirus Job Retention Scheme (CJRS), links have been made available to the previous guidance that related to claim periods ending on or before 30 June 2020.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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