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Furlough - Process payroll

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Hi all, Just wondering if you have processed pay for employees on furlough? We are using Xero payroll package for pay and i was wondering whether i should create a new pay item called "Furlough pay" for such employees? I understand that HMRC are working on a portal for employers to reclaim the the cost however not sure if it is best to separate such pay in RTI submissions as well? Thank you

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By ann domonkos
02nd Apr 2020 15:04

Thats what moneysoft recommend you do.

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By smayles
03rd Apr 2020 11:09

Hello Ann - I can't find any published advice from Moneysoft - what is it that they are suggesting? I am now pretty confused - do I run the payroll as usual (albeit at 80% of usual or average wages) or not run a payroll at all - with no RTI submission either - and wait until HMRC are in a position to accept the information through their (as yet not available) portal?

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By lionofludesch
03rd Apr 2020 11:17

smayles wrote:

Hello Ann - I can't find any published advice from Moneysoft - what is it that they are suggesting? I am now pretty confused - do I run the payroll as usual (albeit at 80% of usual or average wages) or not run a payroll at all - with no RTI submission either - and wait until HMRC are in a position to accept the information through their (as yet not available) portal?

Employees need paying.

You need to run the payroll on the normal due dates.

Recording furlough separately is something I've done but it won't be part of your RTI submission. Nor will it do the complete job of recording information for the JRS claim. You'll still need to add on employer's NI and pensions, probably on a spreadsheet or fag-packet of your own. There's a limit to what you can expect software houses to come up with at a week's notice. Moneysoft hasn't amended its software, rather they've advised how to adapt the existing software to separately record furloughed pay.

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By lionofludesch
02nd Apr 2020 15:14

Your furloughed pay won't be reported separately under RTI.

You just need to keep a record of it. Whether you do that through your payroll software or some other way is up to you.

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By NYB
02nd Apr 2020 16:20

Yes you should.

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