November 06, 2020
The winter of 2020 has been predicted to be a difficult winter for businesses worldwide with the pandemic continuing to raise the toll of those infected. Considering the imposed lockdowns and the problems businesses are facing retaining their current employee base, it is no wonder that the government has already thought ahead on how to save jobs. With the economy dwindling the focus no longer is on making profits but to see that the current breadwinners are able to provide their families with a comparatively debt free existence by honouring their present debts. This is where the Job Support Scheme also known as the JSS will play a huge role as the scheme will be expanded so that jobs stay protected even as businesses are forced to close down due to Covid-19 restrictions.
However, important to note is that the JSS has received many revisions. First the employers as well as the government were to pay 1/3rd of the usual pay of the employees for the hours not worked granted that the employee worked around 33% hours that week. But this model was for an economy that was gradually waking up from the pandemic and getting back to its feet. With the lockdown being reimposed due to the worries pertaining to high infection rates, the JSS scheme has evolved as well. Now, it is far different from the original scheme and yet, employers would certainly agree that it is all the better.
What are the changes to the Job Support Scheme (JSS)?
A few salient points regarding the same have been noted below. Information in detail has been provided after that.
Due to all the changes that are constantly being introduced (albeit for the better), it has become increasingly harder for employers to accustom themselves to the changes. This is where having someone look into our business accounting can help you. Doshi Accountants believes in keeping their clients up to date with the dynamic changes to the legislation so that they are always compliant.
Facts about the Job Support Scheme (JSS)
As per the previous information from the HMRC the scheme was set to run for 6 months that is till January 2021
The scheme has been introduced with two variations – JSS Open and JSS Closed
The government has made the scheme easier for the employers by being more generous to them as they no longer need to pay 1/3rd of the employees pay as the former Wage Subsidy Scheme had proposed.
The JSS Open
To note: The cap amounts actually reduced in proportion to those hours that are not worked, Also, the employer unlike in the previous furlough schemes, will have to pay the National Insurance and Work Place Pension contributions that are applicable.
Undoubtedly by the time the JSS scheme does officially start there would be more changes. That is why a small business accountant or accounting services have become the need for the hour as how much time can an employer expend in keeping up to date with the HMRC? Doshi Accounting can prove invaluable here, as we can handle your accounting, taxation, VAT, bookkeeping and payroll needs all under one roof!