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Hi,   Question Re changing employees’ s ...

Gabriella Szente
Hi,   Question Re changing employees’ status to ‘Furloughed’: We have employees whose employment status was full time on the 28 February 2020. These employees’ employment status was changed to flexible on the 30 March 2020. We are now trying to mark these employees as ‘Furloughed workers’, however when we click on the ‘use calculated’ button the system does not calculate their average hours worked, but simply picks up on their contractual hours that are under their HR profile.   Is this an issue because such employees were full time employees on Fourth on the 28 February 2020? I understand that there will be a system update on the 6 April regarding the calculation; does that mean that we won’t have this problem if we wait to furlough staff on or after the 6 April 2020?   Many thanks,
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4 comments

Date Votes
  • Gabriella Szente

    Thank you Angelo.

     

    I have a few more questions on this topic:

    • Will this information need to be sent to HMRC (the hours appearing under the furloughed status page)? I am asking as if we enter the full-time equivalent hours then this will not be a true reflection of the employees' actual hours worked. If this information is purely for internal purposes and this does not need to be submitted to HMRC, then option 1 could work as we will need to do a different calculation for HMRC anyway. However, if the information recorded under the furloughed status page will be submitted to HMRC then I am hesitant to use the full-time equivalent hours instead of the actual working hours. Could you confirm if this data will need to be submitted to HMRC?
    • Re the 'employee hours worked' report: unfortunately, this does not seem to be accurate as the report does not take into consideration any holidays/absences employees’ had. We had quite a lot of employees whose employment status was full time on the 28 Feb, so it is not feasible to calculate this manually. Do you have any other suggestions?
    • Re the system update on the 6 April: as all companies will need to calculate the average earnings of staff who worked variable hours (from the 2019-20 tax year) regardless of the fact that these employees had full time or flexible employment status on Fourth, I am wondering if this calculation will be/should be used automatically, as one of the options, when clicking on the ‘use calculated’ button on the furloughed status page?

    Many thanks,

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  • Angelo Verri

    Hi Gabriella

    as the employment status is recently changed, you can consider a couple of options. I cannot comment on the coming export calculations as I do not know how it's going to work at this stage.

    1. The employee was full time for the 52 week period before furlough so you can use the full time equivalent of his job title before the employee status change for the setting of furlough status
    2. You can run the rota>administration>reports>exports>employee hours worked for the location/division the employee used to work for the last 52 weeks worked. Then look at total hours and divide by 52 for the average weekly hours worked

    I hope this helps!

    thanks

    Angelo

    Running with Knives

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  • Gabriella Szente

    Thank you Sophie.

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  • Sophie Waters

    Hi Gabriella,

     

    Thanks for the questions. The information, the hours under the furlough page, won't be sent to HMRC by Fourth, but these could aid your reporting. We are currently working on an report/export that will help with the information you require for your payroll.

    In regards to the system update about the 52 week holiday calculation, this is being applied as the portals are rolled into the new tax year. If you wanted to change this global setting before your portal roll forward, you can do so in the HR global settings. This will then be used in the furlough status page.

     

    Many thanks,

    Sophie.

     

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