Can't pay wages - what to put on the payroll?

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My client has a cafe and was forced to shut on Friday.  Wages have been paid to the end of the week and he is to make the 3 staff redundant tomorrow but will be unable to pay payment in leiu, holiday pay or redundancy.  Should these still be put on the payroll?  If it further assists two of the workers already get universal credit and the other one will be making a claim for it.

One employee still has 3 weeks holiday pay due, was advised to take them before the 5th April, but hadn't booked them. Are the full holidays accrued or just to the 5th April?

Replies (10)

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the sea otter
By memyself-eye
23rd Mar 2020 19:19

Don't make them redundant - claim the 80% allowance and hope he can find the funds to pay it.
See the new interest free loan scheme..

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Replying to memyself-eye:
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By legerman
24th Mar 2020 19:08

memyself-eye wrote:

Don't make them redundant - claim the 80% allowance and hope he can find the funds to pay it.
See the new interest free loan scheme..

Thanks. I had further discussions with the employer last night and today the staff were given the option to be made redundant or be furloughed. I'm pleased to say they all agreed to be furloughed so problem solved.

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By insolventnl
23rd Mar 2020 19:46

Is the 80% not for employees who you would be making redundant

ie if say you have a cafe and three employees - can you claim the 80% for all three because you shut down?

As my understanding is this 80% is for EMPLOYEE and not EMPLOYER. It is to reassure the employee you wont loose you job.

Now closing your shop because of downturn in trade is a different reason - one which is still not good BUT for that there is grants and nil interest rate loan

Therefore I am sceptical when people say I have three staff and am looking for the 80% for all 3. HMRC would surely not buy that you were genuinely going to make 100% of your staff redundant

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Replying to insolventnl:
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By legerman
23rd Mar 2020 21:05

insolventnl wrote:

Therefore I am sceptical when people say I have three staff and am looking for the 80% for all 3. HMRC would surely not buy that you were genuinely going to make 100% of your staff redundant

Did you not see the first sentence. All cafe's had to shut down on Friday.

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By SXGuy
24th Mar 2020 10:07

The question was what to put on the payroll. The answer is, put whatever wage would have been paid and submit an FPS in the usual way. If your software allows, put the pay in to an additions section rather than basic pay or hourly pay section. And also if possible, make a note that the employee is furloughed.

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Replying to SXGuy:
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By Ben10Rose
24th Mar 2020 16:59

Hi, I have just seen your answer and that was my thoughts however I have just seen this in the FT which seems to suggest putting the 80% on the payslip and then once they can the employer will get that amount back

https://www.ft.com/content/bd63d562-6d1b-11ea-89df-41bea055720b

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Replying to Ben10Rose:
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By SXGuy
24th Mar 2020 19:23

That's not how I've just read your link. Correct me if I missed it. But it only mentions employers paying the additional 20% if they wish. I didn't see anywhere about how to report the wages.

As far as I'm aware you record the amount you would have paid, regardless.

If government decide to use past payslips to calculate the 80% how will they do this if you only submit 80% of the intended pay?

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Replying to Ben10Rose:
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By SXGuy
24th Mar 2020 19:24

.

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Replying to Ben10Rose:
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By SXGuy
24th Mar 2020 19:24

.

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By Peter613
24th Mar 2020 23:06

But what do you actually pay the staff who are furloughed ? Do you pay them £x and you get back 80% of £X , or do you pay them 80% of X and recover it all

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