Questions and Answers
Coronavirus: I employ people, what help is available to them and my business?
I employ people and want to know what support my staff and I will receive during the coronavirus outbreak.
Statutory Sick Pay (SSP) will be available for eligible individuals diagnosed with coronavirus or those who are unable to work because they are staying at home in line with Government advice. To be eligible they must have earnt on average at least £118 per week over the last three months.
Individuals are encouraged to use NHS 111 online to get a fit note after seven days instead of going to the GP, where you request evidence.
If SSP is not payable as they are not eligible, then Contributory Employment and Support Allowance may be available for people from the first day of sickness, rather than the eighth.
The Government has introduced a rebate scheme reimbursing small businesses (less than 250 employees) for up to two weeks per employee of SSP due to coronavirus. Employers should maintain records of staff absences and payments of SSP.
If an employee is not sick but their employer tells them not to come to work, they should receive their usual pay. For example, if someone has returned from an affected area and their employer asks them not to come in.
Also, if you are struggling to pay your staff you can access the Coronavirus Job Retention Scheme. All UK employers with a PAYE scheme will be able to access support to continue paying part of their employees’ salary for those that would otherwise have been laid off during this crisis. This applies to employees who have been asked to stop working, but who are being kept on the payroll, otherwise described as ‘furloughed workers’. HMRC will reimburse 80% of their wages, up to £2,500 per month. A few key points to note on this topic:
- Employees must have been on the payroll as at 28th February 2020
- Employers NI and Employers pension contributions will be reimbursed on top
- Employees that were made redundant after 28th February, can be rehired and immediately furloughed
This is to safeguard workers from being made redundant and provide financial assistance to business owners. The Coronavirus Job Retention Scheme will cover the cost of wages backdated to 1st March and is initially open for three months but may be extended if necessary.
If you need any help or just want to talk to someone about your options, please don’t hesitate to give us a call today 01908 978 278.
For our latest COVID-19 news and guidance for your business, visit our dedicated Coronavirus Hub.
We will be updating it regularly as we continue to monitor and digest all the latest information
Date published 3 Apr 2020 | Last updated 3 Apr 2020
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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