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Furlough Reclaim for Bank Workers Paid in Arrears

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I have bank workers that are paid in arrears and were furloughed from 23/03/20.

For their April pay (pay date 23/4/20) they have received the hours worked from 1/3 to 22/3 and 80% furlough pay from 23/3 to 31/3. How do I go about calculating the ERs NI and Pension that can be reclaimed? As they have received the payment in April, I'm assuming that the calculations have to be based on the current tax year's thresholds, however as March and April have a different amount of days, I'm not sure how to correctly calculate the portion that can be claimed back from HMRC


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By PandoraSleeps
01st May 2020 13:30

I think that your pay period is 1-31 March, albeit paid in April, so I would be doing my pro-rating based on 31 days to get the correct fraction to reclaim, but using the 20/21 rates / thresholds as the NI etc. would need to match to the payroll reports. This is just my opinion though as the guidance does not cover this exact scenario, I'm just trying to be logical.

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By SteveHa
01st May 2020 15:27

PAYE works on receipts basis, not earnings basis, so use the thresholds in force when they are entitled to receive the payment (and I use entitled deliberately since for many employers, payment is only actually made once funds are available in the current climate).

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By SXGuy
02nd May 2020 07:57

This is such a confusing topic for some people but it need not be.

Ignore when someone has worked. Or when they are paid for that work. All you do is use the pay they receive in the month you are dealing with and apply the logic to that. It's that simple.

Jrs is based on pay in March, 80% of that is calculated regardless of what's been paid in April.

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