2ND UPDATE FROM 31/03/2020
Employees whose pay varies
If the employee has been employed (or engaged by an employment business) for a full twelve months prior to the claim, you can claim for the higher of either:
- the same month’s earning from the previous year
- average monthly earnings from the 2019-20 tax year
If the employee has been employed for less than a year, you can claim for an average of their monthly earnings since they started work.
If the employee only started in February 2020, use a pro-rata for their earnings so far to claim.
Once you’ve worked out how much of an employee’s salary you can claim for, you must then work out the amount of Employer National Insurance Contributions and minimum automatic enrolment employer pension contributions you are entitled to claim.
UPDATE FROM 31/03/2020
The Government are still to clarify issues as they are presented through the various Accounting bodies and Industry bodies - we are getting closer to being able to fully understand how to process furlough payments.
Before we can confirm what payments will be made, who is eligible, and when we will start making them we still need to know the following points:
1. As an agency worker wages fluctuate, this can be weekly in some cases, and therefore the government needs to issue advice on how we will calculate the 80% value. Will it be a 4 week average or a 12 week average, or will it be based on the a specific weeks wages?
2. All payroll software packages have never been setup to deal with furlough payments. Our software providers are busy developing the software to allow us to make the payments. We have been assured that we will have the ability to do this over the course of this week. Once we have this we will be able to give further guidance on how we will process this.
3. From the perspective of the business, the Government need to make funding available to make payments to workers and as yet we have not been informed how this will be done but rest assured we are doing everything we can to understand the situation.
We are in constant contact with our Solicitors and HMRC and will continue to release further information as the situation unfolds.
The team @ Recruit4staff