Guernsey Coronavirus Payroll Co-Funding Scheme

The sectors that are eligible for support has changed from Full Lockdown & Recovery Stage 1, to Recovery Stage 2, to Recovery Stage 3.

Eligible sectors in each stage are shown below.

Under the Payroll Co-funding scheme, the States of Guernsey will help you to pay your employees an amount equivalent to Guernsey’s minimum wage to ensure a level playing field. This is currently set at £8.70 per hour (£8.25 for 16 and 17 year olds). For a 35-hour week, this figure would equate to a gross figure of £304.50. The States of Guernsey will meet 80% of this figure (i.e. £243.60 per week based on a 35 hour week). Employers must make up the remaining 20% (equivalent to £60.90 per week). Employers are encouraged to ‘top-up’ these amounts further if they are able to do so.

For business owners and self-employed claiming payroll support, hours that can be claimed are capped at 42 hours per week.

Employers will still be responsible for paying the social security employer contribution of 6.6%

To be eligible for support:

• Businesses must work within an eligible economic sector.
• Businesses (including sole traders) must have been registered with the Revenue Service for social insurance by 31st December 2020 and have either submitted returns as an employer for quarter 4 of 2020 or in respect of a sole trader, paid class 2 contributions (or set up a direct debit to pay these). 
• Businesses must be run full-time, and if you are self-employed be your main source of income – if your profits from the business are less than the social insurance lower earnings limit of £7,488 for 2020, this will not be considered a full-time business or your primary source of income. Where the business is making a loss, the same will apply.

Businesses can claim in respect of anyone that was employed as of 23rd January 2021.

Support will be calculated based on the normal contractual hours worked by your employee(s) up to a maximum of 42 hours per week.

Payroll Co-funding is a reimbursement scheme. Applications for payroll support can only be made in the month following the month payroll was paid in.

From 1st February, applications can be made for reimbursement payments for the period 23rd January, 2021 to 31st January, 2021. The payment for this period will be capped at 42 hours per person. February payroll reimbursement applications will open on 1st March, 2021 to cover 1st February to 28th February 2021. The payment for this period is capped at 168 hours per person.

Applications for Payroll must be applied for here.  

When making a claim for Payroll Co-funding, you will be required to make a declaration that support is needed. You will need to answer a few questions to check eligibility before your claim can be processed.

From 15th February 2021, a small business grant is available for qualifying businesses. More information is available at: https://covid19.gov.gg/guidance/business/grant

From Monday 1st March, the payroll co-funding scheme will be enhanced to cover 100% of the payroll for businesses that remain heavily impacted. Support is paid monthly in arrears, with support for March being paid from 1st April 2021.

• As in the previous lockdown, the level of support provided will be based on the impact of turnover of the businesses.
• Businesses that are trading with a turnover of less than 40% turnover for the same month in 2019 will receive 100% payroll support, for the minimum wage to a maximum of 42 hours per week per employee, including the self-employed and sole traders.
• Business that are trading with a turnover of between 40% and 70% turnover for the same month in 2019 will receive 80% co-funding payroll support, for the minimum wage to a maximum of 42 hours per week, per employee including self-employed and sole traders.
• Support for March is paid monthly in arrears and capped at 194 hours per person.
• This will be an enhancement of the scheme launched on the 23rd January, and the same criteria and rules will apply.

From Monday 8th March, Guernsey entered Recovery Stage 2, (March 2nd in Alderney) of the unlocking process. This meant as large number of businesses were able to return to near normal operation.

As the Bailiwick moves to Recovery Stage 3 (March 9th in Alderney, provisionally March 22nd in Guernsey) all industry sectors, except those related to Travel and Tourism will be able to return to normal or near normal operations.

As Recovery Stage 2 and Recovery Stage 3 is enacted, business support will be suspended for those industries that can return to normal or near normal operations.

Claims for co-funded payroll support can be made for the period covering March 1st to March 31st from April 1st.

Support will be capped based on when industries were allowed to return to normal or near normal operation as we moved through the Recovery Stage Process.

The table below shows the capped level of support in hours for March claims.

You will be able to apply online here: https://covid19.gov.gg/guidance/business/payroll-scheme

Support will only be provided to eligible businesses that have seen their turnover reduced to less than 70% of the equivalent month in 2019.

You will need to answer a few questions to check eligibility before your claim can be processed.

Employees

An employee should not be in receipt of sickness benefit and payroll co-funding for the same period. Therefore, if an employer is eligible for payroll co-funding, and is claiming for an employee under this scheme, then the employee must not also claim sickness benefit, incapacity benefit or industrial injury benefit.

Self-employed and sole traders

Individuals who are self-employed, or sole traders, should not claim both sickness benefit and payroll co-funding for the same period. If you are self-employed and receiving sickness benefit, incapacity benefit or industrial injury benefit, you will need to deduct this from your payroll co-funding claim. In order to do this, please contact business support who will advise you on how to complete your payroll co-funding application.

Eligibility for easements

Businesses will be subject to the same eligibility criteria as required for the Payroll Co-funding scheme.  Eligible sectors are listed at: https://covid19.gov.gg/guidance/business/payroll-scheme.

States property rental payments (Excluding Residential Property Rent)

If you operate your business from a States of Guernsey property or area of land, it has been agreed to waive rents due on a month by month basis (whole months only) up to an initial period of 3 months. This waiver will only apply for the period where rented premises have not been able to be used and where the business can demonstrate that any States grant received is insufficient to cover overheads, including the rent, for a 2 month period.

It is a strict condition of this waiver that the benefit must be passed on to any sub-lessors of the affected premises in a timely manner.

Please email financial.support@gov.gg with the title “Rent Waiver” giving reasons for your request and you will be contacted as soon as possible. All applications for a rent waiver will be considered on a case by case basis. This covers the two months commencing 1st February, 2021.

Commercial Mooring Fees (Excluding Leisure Moorings Fee)

If you hold a commercial mooring, in St Peter Port or St Sampson Harbour, from which you derive your principal income or which is a critical part of an associated business and for which you pay a mooring fee to Guernsey Harbours, it has been agreed to waive the mooring fees due, on a month by month basis (whole months only) up to an initial period of 3 months. This waiver will only apply for the period where the commercial mooring could not be accessed for business use and where the business can demonstrate that any States grant received is insufficient to cover overheads, including the mooring fee, for a 2 month period. 

Please email Guernsey.Harbour@gov.gg with the title “Commercial Mooring Waiver” giving reasons for your request and you will be contacted as soon as possible. All applications for a mooring waiver will be considered on a case by case basis. This covers the two months commencing 1st February, 2021.

In the case of Commercial Fisherman this only applies to qualifying “registered and licensed fisherman”, being an individual whose income is derived wholly or mainly from commercial fishing, with an associated mooring fee for vessels that are wholly or principally used for catching fish for profit as a business.

If you wish to apply for both waivers, please email Guernsey.Harbour@gov.gg where all applications will be considered on a case by case basis.