We have reported furlough pay on FPS submissions for week 52, week 1, 2 and 3. The employer was shut down on 20/3 and with zero income has been unable to make any of these payments pending the CJRS grant. The claim was submitted on Monday 20/4 so we anticipate the wages can be paid possibly next Thursday 30/4.
New RTI guidance issued 23/4 states we should submit an EYU to remove the week 52 wages. It’s not clear what we should do about weeks 1,2,3, but presumably those figures should also be zeroed, and instead the 4 weeks’ worth of payments entered into week 4?
1 – staff will be penalised by receiving a lump sum in week 4 – many will pay NICs and/or pension contributions that were not due when they were getting smaller weekly amounts. It’s not their fault that this has come as a lump sum, nor it is the employer’s fault because no funds were available until after the CJRS opened for claims this week.
2 – if we had acted as per the RTI guidance, any staff who’d made a successful claim for Universal Credit would presumably be penalised in week 4 due to the large lump sum. Would DWP try and claw back the monies? After week 4, staff probably won’t be paid again until week 7 – it’s feast or famine.
3 – how can we calculate the CJRS claim when the goalposts have moved? I calculated it in good faith based on 2019/20 bands for week 52 NIC and pension. How do I calculate the lump sum to pay the staff this week? If it’s now all based on 2020/21 bands it’s going to differ from the claim we’ve already put in!
Given the hours we’ve already worked this week, I am feeling flattened by this. Anyone else with this issue?