Over the next couple of months, employers will be expected to contribute more towards their employees’ wage cost, as the Government contributions taper off.
From 1st August, employers will need to pay the National Insurance and Pension contributions for each employee. You can still claim 80% of their salary, but you cannot claim for NICs or Pension contributions.
We’ve put together a handy table so that you can easily keep track of what the Government will be contributing:
|Employer NICs and Pension contributions||Yes||No||No||No|
|% of wages||80% up to £2500||80% up to £2500||70% up to £2187.50||60% up to £1875|
This means that in September and October, not only will employers have to pay the NICs and Pension contributions, but will also have to top up their employees’ pay to 80%.
- In September, employers will contribute 10% to their employees’ pay
- In October, employers will contribute 20% to their employees’ pay
If you have any questions about the furlough scheme or Government contributions, contract us.
Considering getting your employees back into work?
As lockdown eases and Gov contributions decrease, you might want your furloughed employees to return to work.
From 1st July furloughed employees can start working for you part time. How this works is entirely up to the business, in terms of how many hours they will work and how many hours they will be paid for and not required to work.
Of course, you can ask your employees to come back on their normal working hours if part time doesn’t suit you.
Whatever you choose to do, we’ve got a bank of template letters to assist you in this process. To download the documents, all you need to do is sign up to our annual subscription.