and i quote
"An employee has worked full time, from Monday to Friday, for A Ltd since 2011, and is paid £2,250 gross at the end of every calendar month. The employee has always been contracted to work 37.5 hours per week. A Coronavirus Job Retention Scheme grant was not claimed for the employee.
A Ltd is a small employer and meets all the eligibility criteria to qualify for Job Support Scheme.
The employee enters into a JSS Open temporary working agreement with A Ltd on 2 November 2020 to work Mondays and Tuesdays (7.5 hours each day, equating to 15 hours per week) from 2 November 2020 to 31 December 2020, at which point the position will be reviewed. The employee’s pay for the working hours in November is £945."
Last night decided to sit down and have a read, because clearly I have nothing better to do at 8pm...when trough all the calculations to make sure I understand. Can somebody explain where the £945 comes from??? I know it was late but come on!
Replies (23)
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9 days x 7.5 hours = 68 hours.
£27000 gross pay.
1954 hours per year (52.1 x 37.5)
£13.82 per hour
so I make it £940.
(however, I always have used 52 weeks myself)
I've been wondering that too. It's a nice round £105 per worked day, but try as I might I can't get a £27,000 annual salary to divide down to that nice round £105 for a 7.5 hour day no matter what formula I use!
30 / 7 = 4.286 weeks
2250 / 4.286 / 37.5 = £14.00
67.5 hours worked at £14 = £945
Ah - they are making their own rules.
The thing is, we should all be calculating the actual gross pay for hours actually worked in the same way we all would for any new starters or leavers with part months.
Just because HMRC have invented a unique to them method, does not mean we should use it.
I thought the same but then what about starting on the 2nd.
We came close with 2250/30*29 (started 2nd) = 2175
2175 x 40% (2 days a week) = 870 plus 2250-2175 = 945
I thought the same but then what about starting on the 2nd.
We came close with 2250/30*29 (started 2nd) = 2175
2175 x 40% (2 days a week) = 870 plus 2250-2175 = 945
Is that not the same as yelsnew's, with the numbers in a different order ?
Genius !!
Still - we're back to the crazy Government method of working out pay by reference to days when you weren't going to work choose what.
Waiting for the legislation before deciding but have made my templates to agree to the hmrc examples in the meantime.
I can imagine I would have a lot of very unhappy starters and leavers if I used this method!
I can imagine I would have a lot of very unhappy starters and leavers if I used this method!
Government and Councils use it all the time.
Hence the advice to resign on a Sunday.
I can imagine I would have a lot of very unhappy starters and leavers if I used this method!
I can imagine I would have a lot of very unhappy starters and leavers if I used this method!
Don't start a job in February whatever you do!
Ive struggled. I have finally achieved the JSS element but am having difficulty with the hours worked calculation. HMRC don't give that - just arrive at £945. That would have helped. I have looked at the responses here which does help. However I have never done a spreadsheet of substance until Furlough. I got my head round flexi Furlough and though that JSS would be based on the same principle as in essence that is what it is.
I wonder would anyone be prepared to share their spreadsheet with me. I have one that is so long as I have input every step
The question should be: How would I agree the gross pay for someone starting in the middle of a month?
The 945 is what HMRC think the employee is entitled to for the hours they actually worked.
Given that this part is not anything to do with the JSS, it should be paid the same way as you normally would for any new starter.
Having finally achieved a result I read the last line of the instructions.
" These calculations are indicative. Full details will be given in guidance end of October". Whats the betting they change it!
It is no wonder the country is going down the pan if this government logic is applied elsewhere..
Think you've made me laugh for the first time today. Do you remember the times when you could do payroll with eyes shut virtually - back in the olden days of February