COVID-19 & Payroll: What you need to know 7th April 2020 COVID-19 & Payroll: Welcome What Employers Need To Know to today’s webinar Paul Byrne Rachel Hynes Managing Director Marketing Executive - BrightPay Laura Murphy HR Manager & Employment Law Expert Karen Bennett Head of Sales & Marketing- BrightPay Victoria Clarke Training & Support Manager 1
COVID-19 & Payroll: What you need to know 7th April 2020 COVID-19 & Payroll: Questions Recording Email What Employers Need To Know Handouts Resources Number of confirmed cases and deaths are rising Employer & Employee Rights COVID-19 Strict guidelines in a bid to reduce the impact of COVID-19 Coronavirus People’s health and well-being should be at the heart of every employer’s response to COVID-19. Everyone who can work from home must work from home 2
COVID-19 & Payroll: What you need to know 7th April 2020 • Coronavirus Job Retention Scheme • Deferred VAT and Self-Assessment payments • Self-employment Income Support Scheme Keep up to date with Government • Statutory Sick Pay relief package for SMEs and public health advice • Coronavirus Business Interruption Loan Scheme • HMRC Time To Pay Scheme COVID-19 & Engage all employees to use basic COVID-19 & • 12-month business rates holiday for all retail, but effective ways to help prevent hospitality, leisure and nursery businesses in England Employer Rights Employer Rights the spread of COVID-19 • Small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief Be aware of what happens if • Grant funding of £25,000 for retail, hospitality and employees do have COVID-19 leisure businesses with property with a rateable symptoms value between £15,000 and £51,000 Additional • New lending facility from the Bank of England to help Resource support liquidity among larger firms Employees with COVID-19 symptoms Coronavirus Job Retention cannot leave their home Scheme COVID-19 & COVID-19 & If an employee lives with someone Short term cash flow support: Coronavirus Business Interruption who has symptoms – can get an Employer Rights Employee Rights Loan isolation note for their employer Support for businesses through Businesses and workplaces should deferring Income Tax payments encourage their employees to work at home Additional Additional Resource Resource 3
COVID-19 & Payroll: What you need to know 7th April 2020 Annual leave rules have been temporarily relaxed COVID-19: How to handle SSP COVID-19 & Employees may carry over up to 4 weeks paid holidays into the next Employee Rights COVID-19 related sick pay differs from two leave years normal Statutory Sick Pay. More information on employee rights throughout the webinar Additional Resource Employees are entitled to Statutory Sick Pay from day one Coronavirus Job Retention Scheme & Furlough Leave COVID-19 Check existing sick leave policies – some businesses pay over the SSP & SSP amount A temporary scheme that is designed to support employers whose operations have been severely affected by COVID-19. BrightPay 20/21 - new option for COVID-19 Related Sick Leave 4
COVID-19 & Payroll: What you need to know 7th April 2020 Employers can claim for: Designed to support employers whose operations have been 80% of usual monthly wage costs severely affected by COVID-19 (capped at £2,500) Job Retention Job Retention Associated Employer National Scheme & Scheme & A way of preventing layoffs and Insurance contributions redundancies Furlough Leave Furlough Leave Minimum auto enrolment employer pension contributions Furloughed employee – an employee who has been placed on a leave of absence Claims can be backdated to 1 Mach Must have been on your PAYE payroll Not all employees need to be placed on 28 th February 2020 on furlough Job Retention Job Retention Furloughed employees cannot It’s available to all employees: Scheme & Scheme & undertake work for or on behalf of Full-time employees the organisation Furlough Leave Furlough Leave Part-time employees If an employee is working on Employees on agency contracts reduced hours, they will not be eligible Flexible / zero-hour contracts 5
COVID-19 & Payroll: What you need to know 7th April 2020 Unpaid leave – cannot be More than one employment – furloughed unless after 28 February can be furloughed for each job Job Retention Job Retention Sick leave / self-isolating - SSP, but Maternity, adoption, paternity, shared Scheme & Scheme & can be furloughed afterwards parental pay - normal rules apply Furlough Leave Furlough Leave Shielding / living with vulnerable – Caring responsibilities, e.g. childcare can be furloughed if they are unable – can be furloughed to work from home Directors – can claim for PAYE salary Minimum of 3 consecutive weeks Job Retention Job Retention Can be furloughed multiple times No income-generating work while Scheme & on furlough, but they can continue Scheme & to run the business from a statutory Maximum furlough – 3 months from Furlough Leave Furlough Leave perspective 1 March Also applies to salaried individuals When the scheme ends, employees who are directors of their own PSC can remain furloughed – no subsidy 6
COVID-19 & Payroll: What you need to know 7th April 2020 HMRC Portal – make a claim for Employees – subject to Income tax, wage costs – not yet available National Insurance, AE contribution Job Retention Job Retention HMRC must be notified of any Scheme & Scheme & Employers – still liable for Employer furloughed employees & details NI & AE contributions but will receive of their earnings Furlough Leave Furlough Leave a subsidy from HMRC to cover this At a minimum – whichever is lower: Employer top-up – Employer NI and 80% of their regular wage AE contributions not subsidised £2,500 per month Full-time & part time employees – Fees, commission and bonuses salary before tax as of 28 February should not be included Job Retention Job Retention Employees only entitled to NMW / Variable pay, higher of: NLW for the hours they are working Scheme & Scheme & Same month’s earning from the Furlough Leave Furlough Leave previous year Furloughed employees pay can fall below NMW / NLW Average monthly earnings from 2019/20 tax year Time spent training – must be paid the appropriate minimum wage 7
COVID-19 & Payroll: What you need to know 7th April 2020 Must provide written notice and keep Deciding who to furlough – equality a record of this for 5 years and discrimination laws apply Furlough Leave Furlough Leave An employee can be placed on Furloughed employee’s retain their & Employment & Employment furlough if contract contains a rights – SSP, maternity, unfair layoff or short-term clause dismissal, redundancy payments Legislation Legislation Where there is no such clause, it’s When the scheme ends – best advised to get agreement from redundancy may be necessary the employee Additional Resource Taxable grant for self-employed individuals – 80% (capped at £2,500) Self-Employed Income Self-Employed Average monthly trading profit over Support Scheme the last 3 years Income Support Scheme Recipients can continue their The Self-Employed Income Support Scheme is designed to normal trading activity protect the jobs of self-employed workers across the UK. Paid in June - a single lump sum installment covering all 3 months 8
COVID-19 & Payroll: What you need to know 7th April 2020 Have a clear communication strategy to ensure everyone is Business Continuity Plan aware of policies and actions & Communication Business Working from home – consider which processed and tools will make Continuity flexible work productive Businesses need to identify where they are and where they need to be to ensure safety and enable business continuity. Keep on touch with employees with video conferencing calls Unable to work from home – implement measures that support social distancing requirements Supporting Employees Flexible working hours / rosters through COVID-19 Business Staggered lunch breaks Continuity Reducing group activities Employees may be suffering from anxiety, increased stress, feeling insecure and the uncertainty about what the future holds. Bring business functions in-house to prevent supply chain breakdowns 9
COVID-19 & Payroll: What you need to know 7th April 2020 Pay attention to employees needs & feelings The Challenge of Coronavirus COVID-19 & & Processing Payroll Reinforce internal peer support or Supporting employee assistance programmes Employees COVID-19 is having a massive impact on payroll. Here at BrightPay, Useful tips from our HR Manager – we’re trying to do everything we can to help our customers. really positive response from all employees Development team consistently making changes to the software as new changes are announced How BrightPay can facilitate BrightPay’s remote working Keeping customers up-to-date with COVID-19 help guide, blogs, emails, webinars Preparedness Customer support – Over 1149 calls Although BrightPay is a desktop solution, it is and 815 emails in one day very flexible and can facilitate working from home. Website – COVID-19 Resources Hub Additional Resource 10
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