Here to help: What payroll professionals need to know about the Job Retention Scheme changes
With no clear indication as to when lockdown will end, the Chancellor has extended the Job Retention Scheme (JRS).
Rishi Sunak stated, “The Job Retention Scheme will be extended, for four months, until the end of October. By that point, we will have provided eight months of support to British people and businesses.”
However, in addition to the extension, changes to the scheme have also been outlined for the coming months.
What this means for payroll professionals is that the current furlough processes that have had to be adopted so quickly will continue but with a few tweaks.
How is the Job Retention Scheme changing?
Payroll professionals will have to adapt to the following changes:
Extension: As previously mentioned the scheme will now be extended until October, providing furloughed workers with the same level of continuous support.
Employers will share the cost: From August employers will now begin to share the cost of furloughed employees, with the exact figures coming later in May.
Furloughed employees will be able to work part-time: The scheme is now aiming to provide greater flexibility to support the transition back to work. As a result, employers currently using the scheme will be able to bring furloughed employees back part-time.
Reporting: Employers may have to start reporting the cost of salaries to HMRC
How can IRIS help?
The ever-changing criteria of the scheme is creating added complexity for payroll professionals looking to stay compliant.
To support, all of our payroll products are able to handle the Job Retention Scheme’s requirements.
For example, the existing top-up functionality within our solutions make the reclaim process simple and streamlined for payroll professionals.
This should ensure employers are in good stead when they have to start making contributions from August.