Job Support Scheme – Wagestream Covid-19 Response
Throughout the outbreak, we’ve released a number of features to help businesses facilitate the government support schemes and help them to support their staff financially during these challenging times.
On 24th of September the Chancellor announced the Job Support Scheme. The JSS will start on 1st November 2020 and will replace the Coronavirus Job Retention Scheme that runs until October 31st 2020.
In response to this, Wagestream is able to support all organisations looking to access the Job Support Scheme.
The Job Support Scheme
The Chancellor announced that the JSS will be the spiritual successor to the Coronavirus Job Retention Scheme. The JSS is similar to the CJRS but avoids terminology relating to ‘furlough’. In practice the JSS has the following changes:
· Employees must work at least one third (33.3%) of their hours in order to qualify for the scheme
· The scheme top-up changes from covering 80% of the lost earnings to two thirds (66.7%) of the lost earnings
· The burden for funding the top-up changes, with the Government share dropping to 50% of the gross cost, and the employer funding the remainder
· The Government contribution is limited to £697.92 per month per employee, which is in-line with the previous cap of £2,500 (80% of the gross limit of £3,125/mo).
The calculation for determining the JSS top-up will be similar to the calculation used for the Flexible Furlough Scheme top-up, and will involve determining the employee’s average hours and reference rate of pay for each pay period.
There are some additional eligibility criteria for companies themselves, the details of which have yet to be fully announced:
· SMEs will be eligible for the scheme (formal definition of “SME” TBC)
· Large employers will only be eligible if they can demonstrate a drop in revenue (formal definition of “drop” TBC)
An example of how the scheme works
For an employee who is normally paid £1000 per pay period, but only works exactly one third of their hours during the pandemic:
· The employee would be paid one third of their average income for their worked hours by you, the employer: £333.33
· The employee’s lost earnings would amount to £666.67
· The employee would be entitled to a top-up equal to two thirds of these lost earnings: £444.44
· The Government would fund half of this top-up: £222.22
· The employer would fund the other half of this top-up: £222.22 (+ marginal NICs TBC)
· The employee would receive gross pay of £777.78 for the period
JSS Explanation Diagram:
How does Wagestream support JSS?
- Alert Wagestream to any employees on JSS via your integration or a manual CSV upload
- Ensure the wages for ‘JSS’ employees are updated to represent 77% of normal income*
- Enrolled employees can immediately access 50% of their minimum income
- Wagestream and the employer will then settle up via the normal process on on payday
- Employer should claim reimbursement directly with HMRC
You will not be required to make any calculations.
*This could be a fixed salary amount/ contracted hour amount/ average hours amount
For more information on the scheme itself, click here.
The functionality is now available on the Wagestream portal and aims to reduce any financial stress that may be caused by the outbreak. If you have any questions please contact your CSM or reach out via email@example.com
If you are not already working with Wagestream but want to make use of this feature or any other Wagestream features get in touch.