Don’t invest unless you’re prepared to lose all the money you invest. NextFin promotes high - risk investments and you are unlikely to be protected if something goes wrong.
Take 2 minutes to learn more.
With the Chancellor having recently extended the Coronavirus Job Retention scheme until October 31, we show you how to calculate furlough payments in line with the change in the rules.
As an employer you can now bring previously furloughed employees back to work part-time. You will have to pay their wages for the time they’re in work, but can apply for a grant to cover any of their hours that they are still furloughed for.
From August, employers will have to start paying their employees’ National Insurance and pension contributions, while from September, the government will pay 70% and employers will pay 10% of employees’ wages for the time they are being furloughed.
From October the government will pay 60% and employers will pay 20% of employees’ wages for the time they are being furloughed. Employers will also pay their National Insurance and pension contributions.
Before calculating furlough payments, employers should first check that they are eligible under the scheme.
Employers will also need to decide the length of their claim period, and decide on employee working hours if the decision is made to flexibly furlough staff.
Once these checks have been carried out, employers will then be able to calculate their employees' wages before making a claim.
July |
August |
September |
October |
|
Government contribution: employer NICs and pension contributions |
Yes |
No |
No |
No |
Government contribution: wages |
80% up to £2500 |
80% up to £2500 |
70% up to £2,187.50 |
60% up to £1875 |
Employer contribution: employer NICs and pension contribution |
No |
Yes |
Yes |
Yes |
Employer contribution: wages |
10% up to £312.50 |
20% up to £625 |
||
Employee receives |
80% up to £2500 per month |
80% up to £2500 per month |
80% up to £2500 per month |
80% up to £2500 per month |
According to the Government, when calculating your employee's furlough payments, you need to look at the regular payments you make. This includes:
To calculate furlough payments, you can use the online calculator here, which can be used to calculate pay for most employees. Further details, including examples of how wages are calculated can be found on the following website.
Authors: Oliver Murphy & Sacha Bright
Disclaimer
To the best of our knowledge, the information we have provided is correct at the time of publishing. Sacha Bright is not a solicitor or accountant and we recommend that you seek professional advice on any topic discussed.
Tagged: sme business coronavirus entrepreneur
Alternative Finance: The Four Types Of Crowdfunding
What is Business Interruption Insurance?
The pros and cons to alternative investment in to private companies via debt or equity
What Is The Term Funding Scheme, And Why Is It So Important To Extend It To P2P Lenders?
Should I Invest in P2P?
Alternative Finance: The Four Types Of Crowdfunding
The pros and cons to alternative investment in to private companies via debt or equity
What is Business Interruption Insurance?
Should I Invest in P2P?
Self-Employed to Benefit From Second Stage of Support Scheme
How To Start A Business Post-Covid-19
Business Banking Resolution Service To Open In November
Over 1.2m Businesses Have Benefited From Coronavirus Lending Schemes
What is The Start Up Loan Scheme?
Figures Show 730,000 Job Losses Since Start of Lockdown
As seen in: