Job retention scheme support in Payroll?
Question asked by Jonas Andersen 5 years ago
Will the Payroll system be adjusted to enable calculation of furloughed staff's salaries?
Question asked by Jonas Andersen 5 years ago
Will the Payroll system be adjusted to enable calculation of furloughed staff's salaries?
Hi Jonas,
At present the way to enter furloughed employees into the system is simply to process the payrol at 80% of their normal pay as per HMRC guidance and submit this via RTI as normal. You will then need to claim this back via the portal that HMRC will create. I hope that this helps.
All the best,
Mohamed.
Hi David,
While I understand your point on writing about the fact the employee has been furloughed onto the payslip. This can be done by adding a payment with an amount and quantity of 0 onto the payslip so that you can place a line with an appropriate description.
Regarding the contributions and NI. It my understanding that your payroll is processed as normal during the periods and so all contributions must be paid as normal and these are included in whatever claim is made to HMRC. However, I would always advise checking with HMRC for matters such as this, just to be sure.
All the best,
Mohamed.
Mohamed although the entry is to be made manually (taking the basic pay and changing the entry to 80% of the full amount) this will not state anything to do with furlough on the employee pay slip?
Ideally the payslip needs to state furlough and the amount, and I also believe the employer does not suffer any contributions whilst the employer is on furlough also, is this correct?
And if so how do you then remove the employer NI and pension contributions?
Hi Jonas,
You are welcome! Have a lovely day.
All the best,
Mohamed.
Thanks Mohamed
Would it maybe be possible to get some guidance on how we enter 80% salaries and HMRC bills properly in the Payroll system, is it just a matter of running payroll with 80% monthly earnings for the furloughed employees?
yes but employers still have to do the calculations for 80% salary, and portion of wages to claim for. I would just have thought it would be something you would prioritise in times like this?
Hi Jonas,
This is something I do not believe we will be able to do at present. I do know that claims for furloughed staff is to be submitted via a HMRC portal.
All the best,
Mohamed.