Changes to flexible furloughing in September

Since July 1, employers have had the flexibility of bringing previously furloughed employees back to work part-time.

To help people get back to work over the first two months of the scheme, the government paid 80% of employees wages for any of the normal hours they did not work up until the end of August. However, going into September there are some changes being made to the Coronavirus Employer Contributions and Job Retention Bonus, which are as follows:

• The government will pay 70% of the wages up to a cap of £2,187.50 for the hours the employees doesn’t work. • Employers pay the employer’s national insurance and pension contributions.

• Employers pay 10% of wages, making up to Changes to flexible furloughing in September 80% of the total up to £2,500.

• Employers will be able to claim a one-off payment of £1,000 for every employee they have previously received a grant for under the Coronavirus Job Retention Scheme and those who remains continuously employed through to the end of January 2021 (subject to certain criteria).

• The employee must have received earnings in November, December and January, paid on average at least £520 per month, a total of at least £1,560 across the three months.

• The employer will be able to claim the bonus after filing their January 2021 PAYE information. Two months into the furlough schemes, many employers are finding payroll tasks continuing and becoming more specialised.

Also, almost all benefits in kind can be payrolled, meaning no more forms P11D. You can register for payrolling benefits in 2021-22 up to 5 April 2021.

If you require any further information on the above then please do not hesitate to contact Lynne Auton on 0845 3082288 or email la@payrollsolutions.org.uk