On March 10, 2020 the Government of Jamaica announced Jamaica’s first confirmed case of COVID-19. Since this announcement, we have seen a steady increase in the number of confirmed cases of COVID-19 which has consequently, largely affected our economy.
With Jamaica’s tourism sector significantly impacted, the Government of Jamaica has taken the initiative to implement programmes to cushion the impact of COVID-19. In that regard, at the closing of the 2020/2021 Budget Debate, Finance Minister Dr. Nigel Clarke announced that the Government will introduce a Covid-19 Allocation of Resources for Employees (CARE) Programme. Whilst the full details of the CARE Programme are not settled, below is a brief outline of the elements of the (CARE) Programme relevant to businesses and its employees:
- Supporting Employees with Transfer of Cash (SET Cash)
Who qualifies?
Under the SET Cash Programme the Government will be providing temporary cash transfers to individuals from any sector who has either been laid-off without pay or their employment terminated since March 10, 2020 (the date Jamaica confirmed its first case of COVID-19) and before June 30, 2020. This programme is only applicable to laid-off or terminated employees whose taxable income is $1.5 million or less.
How does the programme work?
Through this SET Cash Programme, by an individual online application process including your banking information and details of your employment, temporary cash transfers will be made to individuals where the Government can verify that they lost their employment or have been laid-off after March 10, 2020 and before June 30, 2020. Under this programme, verification of your employment prior to March 10, 2020, in addition to verification of statutory deductions filed on behalf of the applicant is required. Employers are encouraged to fill out and upload a P45 form which would identify all their laid-off or terminated employees. Once there is a match between the applicant’s data and the data on the P45 form and the applicant is verified, payment will be made electronically to applicant’s bank account.
Successful applicants will receive payment of $9,000 per fortnight, paid monthly.
- Business Employee Support and Transfer of Cash (BEST Cash)
Who qualifies?
The BEST Cash Programme is designed for tourism related registered businesses who are able to continue to employ individuals for the period of March 10, 2020 to June 30, 2020.
How does the programme work?
Under the BEST Cash Programme, for each employee retained with a taxable income that is less than $1.5 million and on whose behalf statutory returns are applied, upon the completion of the relevant online application form by the tourism related business, the Government will transfer to that tourism related business, via monthly direct transfer to their bank account $9,000 per fortnight for the months of April May and June. This is a total of $54,000 for each employee retained.
Other Programmes available to small businesses & small operators
Small businesses with sales of $50 million or less, which have filed their taxes in the 2019/2020 financial year and filed payroll returns indicating they have employees, will be eligible for a one-time COVID small business grant of $100,000. These small businesses will be required to complete an online application form including their banking information. The submitted tax return for 2019/2020 will be verified as well as the relevant payroll returns relating to their employees.
Small operators in the tourism and related sectors are to benefit from $1.2 billion in grants. These grants can be accessed through a special multi-stakeholder COVID Tourism Grant Committee.
Opening of Applications
Applications for the various Programmes are currently not open. It is anticipated that applications will be open by April 9, 2020, subject to passing of the supplementary budget. Applications will be available online. Do remember that this is a work in progress and may be subject to any changes implemented by the Government.
This article is intended to provide general information only and is not to be relied on in place of legal advice.
Ms. Paulette Neil is an Attorney-at-Law in the Montego Bay office of the law firm DunnCox, located at Unit 17, Fairview Towne Centre. You may contact her at Paulette.Neil@dunncox.com.