TOGETHER WE COUNT UPDATE – Employer update
The Government have just released further details regarding employer eligibility to receive the Job Retention Bonus of £1,000 per employee in February 2021. I thought I would share that with you.
What does the employer receive?
- £1,000 from the Government for each eligible employee.
- The claim can be made through the Gov.UK portal in February 2021.
- The JRB is taxable and should, therefore, be reflected in the business accounts.
An eligible employer?
- Made a legitimate claim for an eligible employee under the Coronavirus Job Retention Scheme (CJRS).
- Must have complied with their obligations to pay and file PAYE accurately and on time under Real Time Information (RTI) reporting system for all employees.
- Payroll records kept up to date and are accurate.
- HMRC requests to provide missing employee data regarding CJRS claims are met.
- Up to date RTI records for the period to the end of January 2021 have been kept.
- New employers where the employees were transferred under TUPE or business succession rules, as long as the new business has made a legitimate CJRS claims for those eligible employees.
- Eligible employers can include recruitment agencies and umbrella companies as long as the aforementioned rules apply.
An eligible employee?
- They have been legitimately furloughed and a correct CJRS claim made.
- They were in continuous employment with the eligible employer from the time of the last CJRS claim regarding them until at least 31st January 2021.
- They earn and receive on average £520 per month between 1st November 2020 and 31st January 2021. A total of £1,560.
- The above criteria must be met regardless of the frequency of the employee’s pay periods, hours worked and rate of pay.
- The earnings must have been reported to HMRC via RTI.
- The employee is not serving a contractual or statutory notice period that started before 1st February 2021.
- Assuming the aforementioned rules apply, office holders, company directors and agency workers can be deemed to be eligible employees.
- Employees on statutory parental leave and military reservists, who returned after 10th June 2020 and for whom a CJRS claim was made, are deemed eligible.
- Employees on fixed term contracts, which may have been extended or renewed, and are in continuous employment, plus a CJRS claim has been made, are deemed eligible.
What records should be kept and checks made?
- Check that each employee’s records are up to date.
- Check that employee’s records have been reported on the Full Payment Submission (FPS) through RTI.
- Check that the CJRS claims have been accurately submitted and, where applicable, the amendments made in a timely manner.
Like always, any questions, please let me know.