Pay 80% of a normal wage
The temporary scheme will cover the cost of wages backdated to 1 March and is covered for 4 months. If an employee is furloughed, you can pay them 80% of their salary up to a max of £2,500 a month - whichever is the lower amount.
- Start your pay run, and then click Edit next to one employee.
- Select Add/edit a Bonus or Other Payment.
- Click the plus icon at the top of the box and select Overtime as the type.
- Name the item something along the lines of ‘Furloughed Employee Pay (Hourly).’
- Type 0.8 into the box marked Multiply Regular pay rate by.
- Enter the regular number of hours worked into newly created box.
- Edit all other Furloughed employees on the pay run, and add in the payment category you have created along with their regular hours.
- Save and then submit your payroll to HMRC as normal.
Pay 100% of the wage
You can elect to top up the remaining 20% of employee wage, but are not obliged to do so under this scheme. In this instance we suggest you run payroll as normal and record separately which employees have been furloughed. You will be able to reclaim 80% of each employees usual gross salary up to a max of £2,500 a month - whichever is the lower amount.