Where a pay period straddles two calendar months, BrightPay’s furlough pay calculator will automatically apportion using a daily basis approach.
Example:
An employee’s weekly pay period runs from 29th June 2021 – 5th July 2021. Their regular wage is £500 and they are being fully furloughed.
Therefore 2 days of the pay period fall in June and 5 days in July.
1. Work out the daily pay rate = £500/ 7 days = £71.43
2. Perform the June calculation = £71.43 x 2 days = £142.86 x 80% = £114.28
3. Perform the July calculation = £71.43 x 5 days = £357.15 x 70% = £250.00
4. Total up the 2 amounts = £114.28 + £250 = £364.28*
* In some instances, users may see a few pence difference if comparing HMRC's calculations or a manual calculation with those calculated in BrightPay. This is because the published HMRC calculations are based on rounded amounts for making manual calculation easier. BrightPay uses a more direct and accurate algorithmic version of the calculation instead.
Where a pay period straddles two calendar months (and thus 2 claims are required), BrightPay will apportion the pay period's gross pay into each claim period on a daily basis. Each day then has a relative weighting in line with the maximum reclaimable daily wage amounts as stipulated by HMRC. This is the only method that guarantees accuracy in all scenarios.
Example:
In this instance, the pay period straddles the claim period, so we have to work out the percentage apportionment.
This is done using the ‘maximum reclaimable wage’ amounts for June (£2,500) and July (£2,187.50) as follows:
Likewise, the calculation being performed and the amount included in the July claim will be:
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