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Coronavirus Job Retention Scheme is ending - your options

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Summary

This guide explains your options when the Coronavirus Job Retention Scheme (CJRS) ends when using Sage 50 Payroll.

Description

CJRS is ending

The CJRS ends this month, on Thursday 30 September 2021. When the scheme ends you need to either:

  • Bring your employees back to work on their agreed terms and conditions.
  • Terminate their employment. Normal redundancy rules apply.
  • Agree with employees any changes to terms and conditions of employment.

Don't worry, we've got the guidance to take you through each option.

 TIP: Claims for furlough days in September 2021 must be made by 14 October 2021. 

Bring your employees back to work

As your furloughed employees start returning to work after being on the CJRS, you may be wondering what action you need to take in Sage 50 Payroll. To find the information you need to know, check our four step guide >

Terminating an employee's pay

In the unfortunate case of redundancies and terminations, when an employee leaves, they may be entitled to redundancy or termination payments. In both cases, these payments are usually free of tax and national insurance (NI) up to the value of £30,000. Any pay in excess of £30,000 is subject to tax as well as Class 1A NI.

Changing an employee's terms and conditions

In Sage 50 Payroll, you can record the terms of employment for each employee. Then, if any of the employees terms change, a notification is generated to reissue a new statement of employment for the employee. Read more >

Government contributions from July 2021

From 1 July 2021, the government have paid 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

This means you must top up employees’ wages to make sure they receive 80% of wages, up to £2,500 in total for the hours the employee is on furlough. The caps are proportional to the hours not worked.

The following table shows the level of contributions from the Government from July 2021, the required employer contribution and the amount that the employee receives per month where the employee's furloughed 100% of the time.

  July August September
Government contribution: hours not worked 70% up to £2187.50 60% up to £1875 60% up to £1875
Employer contribution: employer NI and pension contributions Yes Yes Yes
Employer contribution for hours not worked 10% up to £312.50 20% up to £625 20% up to £625
For hours not worked employee receives 80% up to £2500 per month 80% up to £2500 per month 80% up to £2500 per month

TIP: You can continue to top up your employees’ wages above the 80% total and £2,500 cap for hours not worked at your own expense.

Claim deadlines

Claim for furlough days in Must be submitted by
July 2021 16 August 2021
August 2021 14 September 2021
September 2021 14 October 2021

Process JRS claims

The Job Retention Scheme Module in Sage 50 Payroll v27.03 makes it really easy to process your claims, and includes the up to date information to make claims. Process JRS now >

You can find detailed information about the scheme and the changes from GOV.UK