bloodnock wrote:
grandad wrote:
I have just managed to fill out the forms for furloughing our employees. Not to difficult for employees that are paid the same amount each month and you don't top up their pay. The calculator is great for that but if they earn different amounts each week or month and you are topping up their pay it is a bloody nightmare. it was made all the more difficult because of the increase in the national minimum wage. We pay above this but we had an increase on April 1st to keep above it and that really complicated matters.
So we now have to wait and see if the payment is made in the 6 days time frame.
what length of time do they work out the furlough rate over, is it like over a year, six month or the last three months, as you say some peoples wages fluctuates so just how do you get a workable average for staff earning different amounts over the months.
would be a real scunner if the last three months were low income months while the three months before that were high income months.
The simple situation is where an employee has worked for the whole of the last tax year and has earned the same amount every month. They have a calculator tool for that. But it is not quite as simple as you would think. For example if someone earns £1,000 a month you would think that the claim would be for £800 but it isn't. This is because you can also claim for the employers part of national insurance contributions and the employers part of the pension contribution. So the total claim for a full month is £817.78 unless you already receive the government national insurance rebate which allows a company £4,000 per year to offset the employers national insurance. However for the first claim period most people will fall into a slightly different calculation which is a bit more complex because you have to take the date that your first employee was furloughed and work out their earnings to that point and divide that by the number of days from the start of the tax year up to that point and then multiply that figure by the number of days left in that pay period and etc.
Still with me.
Now if you have an employee who earns a different amount each month or has not worked the full year it gets realy complicated and I am not even going to attempt to explain that but the calculator doesn't work for that nor does it work if an employee has had a pay rise during the furloughed period such as anyone on minimum wage who automatically got a pay rise on April 1st. There are some explanatory on the HMRC website to help. Our first claim period was from March 13th until April 30th.
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