Flex furlough payment

Natalija Cristea

• August 05, 2020 17:13

Hello,

I was hoping that someone can clarify on how to calculate flex furlough.

I watched the webinar but it gives an example on how to calculate if for the claim period but no further explanation on how to process for the days that falls under a different month. 

If our payroll is from 6/07-2/08 - I fully understand how to calculate for 6-31.07 but how 2 August days needs to be treated? 

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  Louise Wilson

  • August 11, 2020 13:14

  Hi Natalija, 

  Essentially the calculation remains the same for working out the usual/ actual hours, as the number of days in a period will remain the same. It does not matter if the period crosses over a month. 

  If you are concerned about claiming back the employer cost (as the entitlement changes), please don't worry. The exports can prorate the calculation on the furlough payment entered, and it can be run between set dates.

  Please ensure that your Furlough payment type has the 'Furlough' flag ticked, as the export needs this to calculate the cost. 

  Many Thanks

  Louise Wilson

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  Natalija Cristea

  • August 11, 2020 13:35

  Thanks Louise, when I spoke to HMRC they have advised that flex furlough hours has to  be calculated separately for each month if pay period spans 2 months. However the export just divides total furlough payment by days in pay period and x by number of days in that month.

  If our pay period is 6/07-2/08 and payment for furlough hours for July is £100 and in August £20 ( as an example).

  If we have processed the total of £120 for that pay period, the export calculates it as £120/28*26 and does not look at furlough hours for July only. 

  I might be doing something wrong but it way too confusing...

   

   

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