From a gross of £1250 - the 80% reclaimed is £1,000. Employee's net pay after tax and NI would be £1153 (keep pension out of this). It makes more sense to me that the 80% should be calculated from the net figure (£922.40 claimed).
Oh please humour me and say you agree - it's been a lonely year just me and the payroll.
Thank you and hope you're all keeping safe
Veronica
Replies (4)
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They always have been.
If not then there would have been massive redundancies in April.
Job protection would have failed
But the furlough claim is paid to the company, not the employee and whatever the employee is paid is taxable and Ni’able.
If fixed rate salary pre-furlough was £1,250 per month, furlough amount will be £1,000, which will be the gross salary, unless topped up. The £1,000 will be claimed, but (unless topped up) will be the amount on which tax, NI and pension are calculated.
If you are picking this up from the published rules, employee tax/NI/pension are different than employer NI/pension. It is the employer's that is not funded.
Employee tax & NI goes straight back to the treasury.