www.gov.uk
Hi
Based on the information out today from GOV.UK it seems that the calculations for working out payments have now changed:
Employees whose pay varies and were employed from 6 April 2019
If the employee has been employed continuously from the start of the 2019 to 2020 tax year, you can claim the highest of either:
- 80% of the same month’s wages from the previous year (up to a maximum of £2,500 a month)
- 80% of the average monthly wages for the 2019 to 2020 tax year (up to a maximum of £2,500 a month)
Does this mean that the calculations that are set up in your Employee Furlough Status Export are now outdated as these are only up to the 29th Feb?
Info taken from the following site in case anyone wants to read further - https://www.gov.uk/guidance/work-out-80-of-your-employees-wages-to-claim-through-the-coronavirus-job-retention-scheme#work-out-80-of-your-employees-usual-wage
This guide is also available today - https://www.gov.uk/government/publications/coronavirus-job-retention-scheme-step-by-step-guide-for-employers?utm_source=e0c0b00f-15ae-4443-a5ee-0a9ea0f9278d&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate
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Hi @Beverly Flint
Fourth received the calculation data at the same time as Employers. We will be looking at the best way in which to provide the data according to the new guidelines and will be updating communities early next week.
Kind Regards
Alison
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Hi Beverly
the guidelines also states the below passage. I don’t think there is any reason to disregard the calculation provided by Fourth which is for period to 29/2/2020.
“Choose the calculation you think best fits the way your employee is paid. For example, if you pay your employee a regular salary, use the calculation for fixed pay amounts. HMRC will not decline or seek repayment of any grant based solely on the particular choice of pay calculation, as long as a reasonable choice of approach is made.”
I did find out an issue with Fourth’s auto calculated method though. If a customer pay date is between the 1st and 5th day of the next month (March 5th for Feb wages), the calculation is incorrect. This is because the number of days it uses do not correspond to the total pay received by the employee for that period (as it is cut to 29/2).
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