Workers Pension Trust recognises that this is a very uncertain time for both employers and employees. We are taking all necessary steps to ensure that the services we provide continue without interruption and we will be sending regular updates to employers.

The Pensions Regulator has confirmed that employer auto-enrolment duties remain unchanged, so where possible, please continue to follow your normal processes and pay contributions when they are due.

The government has announced a range of measures aimed at helping businesses continue in these difficult times and yesterday released further details on the Coronavirus Job Retention Scheme.

Coronavirus Job Retention Scheme

The key features of the Scheme, which is expected to be up and running by the end of April, are;

• This is a temporary scheme open to all UK employers for at least three months starting from 1 March 2020.

• It is designed to support employers whose operations have been severely affected by coronavirus (COVID-19).

• Employers can use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage.

• Employers can use this scheme anytime during this period. The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.

• Employers need to make a claim for wage costs through this scheme. You will receive a grant from HMRC to cover the lower of 80% of an employee’s regular wage or £2,500 per month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that subsidised wage. Fees, commission and bonuses should not be included.

• Employers must pay their employee the lower of 80% of their regular wage or £2,500 per month. An employer can also choose to top up an employee’s salary beyond this but is not obliged to under this scheme.

Employer National Insurance and Pension Contributions

• All employers remain liable for associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on behalf of their furloughed employees.

• As outlined above, you can claim a grant from HMRC to cover wages for a furloughed employee, in line with the rules of the Scheme, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on paying those wages.

The government will issue more guidance on how employers should calculate their claims for Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions, before the scheme becomes live.

Full guidance is available from https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Contact Us

Our staff are working remotely and will continue to support you. Contact us by email info@workerspensiontrust.co.uk where possible and we will get back to you either by email or phone. Please keep in contact, we're here to help.