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Post Info TOPIC: Payroll for furloughed employees


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Payroll for furloughed employees


Please could advise the figure to use when processing the payroll for furloughed employees.

If a person's usual gross pay is 2500 per month, the claim for the 80% grant would be 2000. Do you use the 2500 figure or the 2000 figure in the payroll to calculate tax and NI?

Thanks

Sam - hope you are all well



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Sam



Master Book-keeper

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The payroll is the payroll.

The furlough claim is something else.

The Employer can pay 100% or 80%. The tax and NI is dependent on what you pay and is done in the same way as the payroll always is.

For the furlough claim - see this for the calculations. Care is needed for the claim as different periods are used for the pay element v the pension and NI element (and more care if there is an ER NI allowance involved). I posted this link below several days/couple of weeks back (another good reason for keeping up with this site )

www.cipp.org.uk/resources/news/calculate-wage-figures-cjrs.html

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Joanne

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position (and by that I dont mean with HMRC)



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Thanks Jo, so if the employer only pays 80% then this figure is used in the payroll?



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Sam



Master Book-keeper

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Hi Sam
Its 100% up to and including the day prior to their furlough and 80% after if the ER is only prepared to pay the 80% for the RTI/wage slip.

What software do you use?

Some have a 'furlough' notes option you can add so you can split the pay on the payslip, but the fact that you have split it doesnt get reported via RTI.

Remember the ER can only do with with the express agreement of the EE....and the ER has to put in writing legally.

__________________

Joanne

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position (and by that I dont mean with HMRC)



Senior Member

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I am using Moneysoft and find it really good, I have updated the columns to reflect the furlough pay. Have you been busy with claims, the government actually are paying when they said they would which surprised me. Next is the self-employment grant

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Sam



Master Book-keeper

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Hi Sam
Before you send it, if you havent already, run an update on Moneysoft as they have done an update either last night or tonday on the furlough thing. Its got a lot of info on it (not had chance to read it yet), although I just used the CIPP instructions.

Yep, mad busy here, I didnt go for the earlier 22nd deadline for the furlough payments as none of mine were that desperate, so just waiting on the first payments but heard they are coming through, mostly, well within timescales. The rates grants have been a bit of a mare - one took 3 weeks and I had to HOUND the local council.

Dreading the next one - the amount of info coming out and changing twice daily is ridiculous.

Have you been busy? Will you quieten down a bit? Im hoping it does as Ive a million and one other jobs to catch up on!

__________________

Joanne

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position (and by that I dont mean with HMRC)



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Posts: 332
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Luckily my clients are dealing with the councils themselves



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Sam

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