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.
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.
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:
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