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Weekly pay Job retention scheme

Do we need to recalculate each week for weekly paid employees

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For weekly paid staff on variable hours we looked at the average for the 19/20 tax year and paid 80% of this in week 1 payroll. For week 2 payroll is the assumption that we look at what was paid in week 2 in 2019 and pay either 80 % of this if higher than the average for 19/20 and the continually assess each week moving forward. So potentially each week could have a different 80 % gross pay figure. Weekly payroll has not been mentioned on HMRC website.

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By paul.benny
11th Apr 2020 18:17

I've seen a report (can't remember where) that HMRC will not be calculating claimable amounts - but doubtless they will validate some. We may get more information once the scheme is actually available.

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JCACE
By jcace
11th Apr 2020 19:12

That's what I would do, although you could do it now if you wanted. There will be one calculation to make, being the calculation of average wages, then a matter of comparing that to the amount from a year ago.
The guidance only refers to monthly amounts, but I would expect that the same process will be followed for weekly, fortnightly etc.
Keep an eye out for further guidance in the coming week.

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By mjshort
13th Apr 2020 12:16

"So potentially each week could have a different 80 % gross pay figure"

HMRC said
If the employee has been employed for 12 months or more, you can claim the highest of either the:

same month’s earning from the previous year
average monthly earnings for the 2019-2020 tax year
If the employee has been employed for less than 12 months, claim for 80% of their average monthly earnings since they started work.

-I have assumed that we can replace 'month' with 'week' to get an accurate figure.
-This is what I have done for variable pay staff for my clients. Let's hope I haven't done the work for nothing.

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Replying to mjshort:
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By s23sgn
15th Apr 2020 15:49

I have took the average earnings until week 50 in 19/20 tax year as this is when staff were furloughed and have used this figure since.

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By crebourret
16th Apr 2020 14:56

ditto

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