Skip to main content
D
Dawn Robinson
April 14, 2020
Question

Paying your furloughed employees (Monthly Salary)

  • April 14, 2020
  • 1 reply
  • 0 views

Hi all

 

Just a quick question after watching your webinar "Your guide to statutory sick pay and furloughed employees" on Thursday 9th April I have a query on the standard payroll .  I understand that i will have to add a new category under "other payments" and call it furloughed monthly salary (or something similar), the thing I dont understand is what figure (salary) to put in the boxes.  After watching your webinar they were entering 80% of the salary which I do understand this bit, but as a company we intend to make up the extra 20% ourselves.

 

What figure do I put in the box?  Will this be 100% of their salary or 80%.    I do know that 80% can only be claimed directly from HMRC when this is up and running , but surely if I pay them 100% all NI figures will be wrong.

 

Or do I enter 80% furloughed amount of salary and then do 20%  their normal salary????  Can someone please help - thank you

1 reply

R
RaymondJayO
April 14, 2020

I appreciate you for watching the webinar last April 9 about paying furloughed employees in QuickBooks Online Standard Payroll, @Dawn Robinson. Rest assured that I've got more insights about this, and how to take care of this issue. 

 

Businesses, like yours, must pay your employees at least 80% of your employees' usual gross wage. You can elect to top up the remaining 20% of their earnings, but you're not obliged to do so. With this, I'd suggest consulting your accountant to help you determine the correct amount to enter in the box. They can check your NI figures when the payment setup is 100%. They can also verify if you'll need to enter 80% as the furloughed amount and add the 20% as their normal salary. This way, your payroll details will be accurate before you can claim for the wages costs from the HMRC. For more information, see the How much should I pay my Employees? section through this article: COVID-19: Coronavirus Job Retention Scheme. 

 

Additionally, I recommend visiting this website: HMRC Guide. It has in-depth details about eligibility, before, during, and after the claiming process. 

 

Please know that I'm always here to help if you need anything else. Keep safe always, @Dawn Robinson.

D
Dawn RobinsonAuthor
April 15, 2020

thank you for your response much appreciated.  I have looked further into this and you will need to enter the following in order for NI to be correct.  I've also tried the payrun as 100% to see what the NI contributions come out as - they are both the same.

 

create new payroll payment type (call it Furloughed Salary for example)

 

you will need to enter figures manually  for above @ 80% of main salary.  if you as a company intend to pay the remaining 20% to employees you will have to enter the remaining amount under salary.  When viewed in draft it shows the two amounts on the employees wageslip. 

    Terms & ConditionsAccessibility statement