Furlough Payment Calculations
How to Calculate Employees Paid by Rota
How to Calculate Salaried Employees Furloughed for Full Period
How to Calculate Salaried Employees Furloughed for Part Period
How to Calculate Salaried Employees with Part Earnings in Period Before 19th March
https://www.tax.service.gov.uk/jobretentionschemecalculator
NIC Calculations
For Employee's Furloughed for the Whole Pay Period
For Employee's Furloughed for Part Period or Pay Includes TopUp
Pension Calculations
For Employee's Furloughed for the Whole Pay Period
For Employee's Furloughed for Part Period
Employment Allowance
Once the Employment Allowance is used up and there is still NIC to pay on Furlough amounts:
Holiday Pay
Furloughed employees continue to accrue holiday as per their employment contract. An agreement can be made between employees and the employer to vary holiday entitlement as part of the agreement. It is important to remember all workers are entitled to 5.6 weeks statutory paid annual leave each year, so the agreement cannot amount to less than the entitled allowance.
Employees are entitled to take annual leave whilst on Furlough, and the amount paid should be 100% of the holiday amount due. Therefore employers are obliged to pay the additional 20% on holiday payment amounts, which cannot be reclaimed via the Coronavirus Job Retention Scheme grant.
If an employee usually works on bank holidays, then the employer can agree to include this in the grant payment. If the employee typically takes bank holidays as leave, then the employer would either have to top up their usual holiday pay, or give a day of holiday in lieu to the employee.
What to Use When Calculating Wages
The amount that should be used when calculating 80% of your employee’s wages includes:
The following should not be included in the calculation
In circumstances where an employer provides benefits to Furloughed employees including a salary sacrifice scheme, these benefits should be in addition to the Furlough pay amount.
How to Calculate Employees Paid by Rota
 Find the number of days between 6^{th} April 2019 (or employee start date) and Furlough start date (or 5^{th} April 2020)
 Find the basic gross pay between 6^{th} April 2019 (or employee start date) and Furlough start date (or 5^{th} April 2020)
 Divide the basic gross by the number of days to get a daily rate
 Multiply the daily rate by the number of furlough days in the period
 Multiply this by 80%
How to Calculate Salaried Employees Furloughed for Full Period
 Find the basic pay from the last pay slip dated before 19^{th} March 2020
 Multiply this by 80%
How to Calculate Salaried Employees Furloughed for Part Period
 Find the basic pay from the last pay slip before 19^{th} March 2020
 Divide by total number of days in the period
 Multiply by the number of furlough days in the pay period
 Multiply this by 80%
How to Calculate Salaried Employees with Part Earnings in Period Before 19th March
 Find the basic pay from the last pay slip before 19^{th} March 2020
 Divide by the number of available days in their last period (including nonworking days)
 Multiply by the number of days in the complete period
 Divide by the number of days in the current period
 Multiply by the number of furlough days in the current period
 Multiply this by 80%
https://www.tax.service.gov.uk/jobretentionschemecalculator
NIC Calculations
For Employee's Furloughed for the Whole Pay Period
 Use the grant amount
 Minus the relevant secondary NIC threshold
 Multiply by 13.8%
For Employee's Furloughed for Part Period or Pay Includes TopUp
 Total pay minus relevant secondary NIC threshold
 Multiply by 13.8% = Total NIC
 Divide Total NIC by the number of days in the period
 Multiply by the number of Furlough days in the period
 Multiply the NIC day rate by the proportion of pay received (100% if only 80% pay is paid to employee)
 Multiply NIC day rate by (Furlough amount divided by total amount)
Pension Calculations
For Employee's Furloughed for the Whole Pay Period
 Use the Grant claim amount
 Deduct the relevant lower earnings limit
 Multiply by 3%
For Employee's Furloughed for Part Period
 Use the grant claim amount
 Take LEL and divide it by the number of days in the period
 Multiply the LEL by the number of Furlough days
 Deduct the part LEL from the grant claim amount
 Multiply by 3%
Employment Allowance
Commencing April 6th 2020, the Employment Allowance is only available to Companies with a secondary NIC liability of under £100,000.
Employers who are claiming the Employment Allowance cannot claim any NIC on the grant application, but should instead submit the Employment Allowance reclaim on the EPS as usual.Once the Employment Allowance is used up and there is still NIC to pay on Furlough amounts:
 Compare the total Employer NIC due for the period, against the NIC associated with Furlough payments
 Use the Grant application to claim the lower amount
Holiday Pay
Furloughed employees continue to accrue holiday as per their employment contract. An agreement can be made between employees and the employer to vary holiday entitlement as part of the agreement. It is important to remember all workers are entitled to 5.6 weeks statutory paid annual leave each year, so the agreement cannot amount to less than the entitled allowance.
Employees are entitled to take annual leave whilst on Furlough, and the amount paid should be 100% of the holiday amount due. Therefore employers are obliged to pay the additional 20% on holiday payment amounts, which cannot be reclaimed via the Coronavirus Job Retention Scheme grant.
If an employee usually works on bank holidays, then the employer can agree to include this in the grant payment. If the employee typically takes bank holidays as leave, then the employer would either have to top up their usual holiday pay, or give a day of holiday in lieu to the employee.
What to Use When Calculating Wages
The amount that should be used when calculating 80% of your employee’s wages includes:
 Regular basic wages paid to employees
 Contractual overtime
 Contractual fees
 Contractual commission payments
 Piece rate payments
The following should not be included in the calculation

Payments made at the discretion of the employer or a client where the employer or client was under no obligation to pay, including
 Tips
 Discretionary bonuses
 Discretionary commission payments
 Noncash payments
 Nonmonetary benefits, such as benefits in kind (company car) and salary sacrifice schemes (including pension contributions) that would reduce an employee’s taxable pay.
In circumstances where an employer provides benefits to Furloughed employees including a salary sacrifice scheme, these benefits should be in addition to the Furlough pay amount.
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