Where a pay period straddles August & September, BrightPay’s furlough pay calculator will automatically take into account the 80% and 70% apportionment required using a daily basis approach.
Example:
An employee’s weekly pay period runs from 29th August – 4th September. Their regular wage is £500 and they are being fully furloughed.
Therefore 3 days of the pay period fall in August and 4 days in September.
1. Work out the daily pay rate = £500/ 7 days = £71.43
2. Perform the August calculation = £71.43 x 3 days = £214.29 x 80% = £171.43
3. Perform the September calculation = £71.43 x 4 days = £285.72 x 70% = £200.00
4. Total up the 2 amounts = £171.43 + £200.00 = £371.43*
* In some instances, users may see a few pence difference if comparing HMRC's calculations or a manual calculation with those calculated in BrightPay. This is because the published HMRC calculations are based on rounded amounts for making manual calculation easier. BrightPay uses a more direct and accurate algorithmic version of the calculation instead.
Where a pay period straddles August & September (and thus 2 claims are required), BrightPay will apportion the pay period's gross pay into each claim period on a daily basis. Each day then has a relative weighting in line with the maximum reclaimable daily wage amounts as stipulated by HMRC. This is the only method that guarantees accuracy in all scenarios.
Example:
In this instance, the pay period straddles the claim period, so we have to work out the percentage apportionment.
This is done using the ‘maximum reclaimable wage’ amounts for August (£2,500) and September (£2187.50) as follows:
Likewise, the calculation being performed and the amount included in the September claim will be:
Need help? Support is available at 0345 9390019 or brightpayuksupport@brightsg.com.