New guidance on Coronavirus Job Retention Scheme has been published.
In a move that could save businesses additional money each (possibly up to £300) month for each employee under the scheme, the government will now cover the employer national insurance and minimum auto-enrolment pension scheme contributions employers pay on the wages they must pay their furloughed staff – on top of the wages covered under the scheme.
Those furloughed can volunteer for the NHS without risking their pay. Guidance for employers on the Coronavirus Job Retention Scheme can be found here whilst guidance for employees can be found here. Extract below for ease of reading...
Employer National Insurance and Pension Contributions - All employers remain liable for associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees.
You can claim a grant from HMRC to cover wages for a furloughed employee, equal to the lower of 80% of an employee’s regular salary or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on paying those wages.
You can choose to provide top-up salary in addition to the grant. Employer National Insurance Contributions and automatic enrolment contribution on any additional top-up salary will not be funded through this scheme. Nor will any voluntary automatic enrolment contributions above the minimum mandatory employer contribution of 3% of income above the lower limit of qualifying earnings (which is £512 per month until 5th April and will be £520 per month from 6th April 2020 onwards).
Facebook Business Grants
Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries. Here’s a link to more information.
Please note Malmesbury Town Team do not offer financial, legal or tax advice. We recommend that official government web sites are used to validate any information. We are passing on highlighted information from official sources and cannot be held accountable for any decisions taken by any particular business.