JSS - Open - example

Has anybody looked at the example given in the JSS scheme -open on gov website?

Didn't find your answer?

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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By tom123
27th Oct 2020 09:43

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)

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Replying to tom123:
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By crebourret
27th Oct 2020 10:04

The closest I was getting was 932. Talking are rounding this up.

Thanks for taking the time. appreciate.

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By neiltonks
27th Oct 2020 09:58

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!

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Replying to neiltonks:
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By crebourret
27th Oct 2020 10:07

hence why scratching my head last night :-
Even my husband joined in ( not scratching my head but the calculations) and decided that I would stick to my own.

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By yelsnew
27th Oct 2020 10:38

30 / 7 = 4.286 weeks
2250 / 4.286 / 37.5 = £14.00
67.5 hours worked at £14 = £945

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Replying to yelsnew:
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By tom123
27th Oct 2020 10:42

yelsnew wrote:

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.

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Replying to tom123:
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By perry23
27th Oct 2020 10:56

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

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Replying to perry23:
RLI
By lionofludesch
27th Oct 2020 11:07

perry23 wrote:

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 ?

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Replying to yelsnew:
RLI
By lionofludesch
27th Oct 2020 10:47

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.

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By yelsnew
27th Oct 2020 10:57

Not sure whether to be proud or embarrassed that I worked out the HMRC nonsense!

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By crebourret
27th Oct 2020 14:16

Will you be using the above calculation when running payroll or use the traditional daily rate?

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By yelsnew
27th Oct 2020 14:35

Waiting for the legislation before deciding but have made my templates to agree to the hmrc examples in the meantime.

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By tom123
27th Oct 2020 10:49

I can imagine I would have a lot of very unhappy starters and leavers if I used this method!

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Replying to tom123:
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By lionofludesch
27th Oct 2020 10:58

tom123 wrote:

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.

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By tom123
27th Oct 2020 10:49

I can imagine I would have a lot of very unhappy starters and leavers if I used this method!

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By tom123
27th Oct 2020 10:49

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!

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By tom123
27th Oct 2020 10:55

urggh - sorry everyone :)

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By NYB
27th Oct 2020 12:57

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

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Replying to NYB:
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By tom123
27th Oct 2020 14:08

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.

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Replying to tom123:
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By NYB
27th Oct 2020 15:23

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!

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Replying to NYB:
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By lionofludesch
27th Oct 2020 15:32

I don't care any more.

I can justify my own calculations.

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By tom123
27th Oct 2020 18:30

It is no wonder the country is going down the pan if this government logic is applied elsewhere..

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By NYB
27th Oct 2020 19:17

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

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