As at the 20th April 2020, the UK government has stated that Business can "claim for 80% of your employee’s wages plus any employer National Insurance and pension contributions, if you have put them on furlough because of Coronavirus (COVID-19)"
Please refer to both links, GOV.UK provides comprehensive guidance on assessing who can use the Furlough Scheme as well as a calculator which can be used to work out what you can claim for employees who are paid the same amount each pay period.
Once you click add record, you will see the next screen where simply need to choose the Employee from the drop down menu, then choose 'Other' as the type of Addition and then type 'Furloughed Pay' in the description (see below screenshot)
When to choose 100%:
If employer pays total amount based on reference pay
Ex: If Reference pay is £3000
Payment for the furlough period £3000 > Select 100% > Value in claim form would be 3000*80% = 2400 or 2500 whichever is lower.
When to choose 80%:
If employer pays only 80% total amount based on reference pay.
Ex: If Reference pay is £3750
Payment for the furlough period £3000 > Client needs to select 80% > Value in claim form would be 3000 or 2500 whichever is lower.
Points to note:
- The system currently does not calculate gross pay grant based on No. of days Furlough came into action (For the month of March2020 – under development)
- You will need to manually enter the data in additional Box for Gross Pay Grant only
- The system calculates Employer NI Grant & Employer Pension Grant based on the Gross Pay Grant calculated
- The file download feature enables accountants to keep a track of all employees who come under the Furloughed category
- You will still need to run the weekly payroll as usual to get the Furloughed employees list
- We have provided the 80% / 100% option in order calculate the gross pay Grant value as per HMRC guidelines
- We have provided download option based on monthly payroll, and not weekly, however, any weekly pay-runs will still appear in the downloaded file
- Furlough values must be added within Additions section. If the value is added anywhere else, the amount will be added to gross pay.