And this is why we are confused..... just gone into the calculator today and to quote
What did the employee earn in the period 10 Feb 2019 to 9 Mar 2019
If you are claiming for an employee who is furloughed for the whole month of Feb 2021, you can adjust the employee's pay to reflect that Feb 2020 had 29 days. To do this you can either
enter the full amount earned for Feb 2020
divide the full amount earned in Feb 20 by 29, then multiply by 28
So are we using the pay as at 9 Mar 2019 or 2020 when the employee was furloughed on 27th March!
And this is why we are confused..... just gone into the calculator today and to quote
What did the employee earn in the period 10 Feb 2019 to 9 Mar 2019
If you are claiming for an employee who is furloughed for the whole month of Feb 2021, you can adjust the employee's pay to reflect that Feb 2020 had 29 days. To do this you can either
enter the full amount earned for Feb 2020
divide the full amount earned in Feb 20 by 29, then multiply by 28
So are we using the pay as at 9 Mar 2019 or 2020 when the employee was furloughed on 27th March!
Barbara, you are in exactly the same position as myself so I am watching these posts too. I use SAGE for our clients and after we ran year ends we ticked the box that says apply for EA, originally thinking HMRC were to send clients approval letters, this now appears to have prompted HMRC to credit their PAYE accounts from day 1.
When we were ready to use the EA months down the line, we then ticked the box "eligible for EA" which then started deducting the EA from the P32.
SO just like your clients, our clients have not had the benefit of the Ni twice, it's just that their accounts at HMRC are sitting in credit by the furlough NI amounts.
Previous guidance stated to ring HMRC to reduce the EA amount allowable so I tried this last week.
I rang 4 different people at HMRC including employers helpline twice, payment line and the JRS line, no-one had a clue what to do or advise but were clear that the instructions that they could reduce the EA was wrong.
All I can do at the moment is leave the clients HMRC PAYE accounts in credit until I can see further guidance.
My answers
And this is why we are confused..... just gone into the calculator today and to quote
What did the employee earn in the period 10 Feb 2019 to 9 Mar 2019
If you are claiming for an employee who is furloughed for the whole month of Feb 2021, you can adjust the employee's pay to reflect that Feb 2020 had 29 days. To do this you can either
enter the full amount earned for Feb 2020
divide the full amount earned in Feb 20 by 29, then multiply by 28
So are we using the pay as at 9 Mar 2019 or 2020 when the employee was furloughed on 27th March!
And this is why we are confused..... just gone into the calculator today and to quote
What did the employee earn in the period 10 Feb 2019 to 9 Mar 2019
If you are claiming for an employee who is furloughed for the whole month of Feb 2021, you can adjust the employee's pay to reflect that Feb 2020 had 29 days. To do this you can either
enter the full amount earned for Feb 2020
divide the full amount earned in Feb 20 by 29, then multiply by 28
So are we using the pay as at 9 Mar 2019 or 2020 when the employee was furloughed on 27th March!
that's fine - we all need a bit of humour doing this job :-)
Barbara, you are in exactly the same position as myself so I am watching these posts too. I use SAGE for our clients and after we ran year ends we ticked the box that says apply for EA, originally thinking HMRC were to send clients approval letters, this now appears to have prompted HMRC to credit their PAYE accounts from day 1.
When we were ready to use the EA months down the line, we then ticked the box "eligible for EA" which then started deducting the EA from the P32.
SO just like your clients, our clients have not had the benefit of the Ni twice, it's just that their accounts at HMRC are sitting in credit by the furlough NI amounts.
Previous guidance stated to ring HMRC to reduce the EA amount allowable so I tried this last week.
I rang 4 different people at HMRC including employers helpline twice, payment line and the JRS line, no-one had a clue what to do or advise but were clear that the instructions that they could reduce the EA was wrong.
All I can do at the moment is leave the clients HMRC PAYE accounts in credit until I can see further guidance.
thank you for this information, much appreciated