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How to calculate the 80% wage of Furloughed employees?

Boyan Tzvetkov

Hello everybody,

 

I have been reading through the articles, but still remain uncertain as to how the actual 80% pay for flexible employees will be calculated - similar with salaried employees.

 

Once I have flagged all my employees as Furloughed (and their average hours worked have been entered - either by the calculator or manually) what would happen to the pay they would be receiving?

 

From my understanding this would be the process (flexible employees only)

  1. Mark employees as Furlough and ensure the average hours worked is correct
  2. There will be a report that would include the average hours worked for the furloughed employees and their pay rate
  3. We will be able to work out their monthly pay by (average hours worked * pay rate)
  4. Then we would need to create a 20% deduction for all of them and upload and send that off to payroll as a deduction

 

Salaried Employees:

  1. Mark employees as Furlough and ensure the average hours worked is correct
  2. For all salaried employees, create a 20% deduction that would again be uploaded and send to payroll

 

After payroll has all these figures, they will be able to processes the payroll normally and in return provide us with all the required figures for PAYE and Pension?

 

I hope I am explaining all this clearly, and would like to fully understand before I start amending employees pays and avoid any errors to their pay during these difficult times.

 

Thank you in advance for your help and hope you are all keeping safe.

 

Kind regards,

Boyan

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Sophie Waters

Hi Boyan,

 

Many thanks for your questions and the process above. If you are a payroll bureau customer then I'd recommend getting in touch with your payroll specialist before your next payroll just to confirm the process with them. We also have a knowledge article on paying furlough pay to salaried employees, which may help you: https://fc.force.com/customer/s/article/WFM-Furloughed-Employees-Paying-Salaried-Employees

 

There are a few ways of reducing the salary for your payroll, depending on if you are reducing to 80% or not. The easiest way would be through a payment type, so you do not need to amend the salary figure.

 

In terms of paying furlough pay to hourly paid employees, you are correct in saying to work out their monthly pay and we are working on an export to help with this information. This figure, once calculated to be 80%, is then uploaded into the payroll module as a payment, in lieu of hours coming from the rota module as they won't be working. Payroll can then be calculated using these figures.

 

Many thanks,

Sophie

Solution Director.

Lisa Houghton

Hi Sophie, hope you are well. Re the rotas, is it ok to just stop processing them if all your employees are being furloughed? As we have no managers in place to process them and no hours will be coming through.

 

thanks

 

Lisa (Frosts)​

Sophie Waters

Hi Lisa,

 

Thanks for the question and I hope you are well. If you have no employees being scheduled because they are on furlough, then it is OK to not create/complete/submit them... as this would just be additional administration for you.

 

If you have some open already but with no hours you can choose to delete them out of the system, or complete the days and divisions and submit a blank rota to tidy up.

 

Many thanks,

Sophie.

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