Support for Employers
Measures to support businesses to manage employment and staffing issues
Legislation is to be enacted to allow small and medium-sized businesses and employers to reclaim Statutory Sick Pay (SSP) that is paid for sickness absence due to COVID-19. There are certain criteria that has to be met for you to be eligible for this.
These criteria include:
- The refund will cover up to 2 weeks’ SSP per eligible employee who has been of work due to COVID-19.
- Employers with fewer than 250 employees will be eligible. Employers will be able to reclaim expenditure for any employee who has claimed SSP as a result of COVID-19
- Employers should maintain records of staff absences, but employees will not needs to provide a GP fit note
- The government will work with employers over the coming months to set up the repayment mechanism for employers as soon as possible.
Employment allowance to increase by £1000
The Chancellor announced an increase in the Employment Allowance from £3,000 to £4,000 to protect small businesses from the rise in minimum wage. From next month, companies will not have to pay Employer National Insurance Contributions on the first £4,000 of their annual bill.
Changes had already been announced that the allowance is only available where, from 6th April, the Class 1 National Insurance bill of the business or charity was below £1000,000 in the previous tax year.
You cannot claim the Employment Allowance from April 2020 if:
- You’re the director and the only employee paid above the secondary threshold
- You employ someone for personal, household or domestic work (i.e. a nanny or gardener) – unless they’re a care or support worker
- You’re a public body or business doing more than half your work in the public sector (i.e. local councils and NHS services), unless you are a charity
- You’re a service company working under IR35 rules and your income is the earning of the intermediary (i.e. your personal service company, limited company or partnership)
- Class 1 National Insurance contributions (NICs) liability are at, or above, £100,000 in the tax year of the claim. This includes connected companies.
- If the business exceeds the de minimis state aid threshold.