Enables you to define the parameters required to process the data used to produce reports and pay employees the furlough pay, plus any top-up you want to pay employees. The data derived from these parameters is also used to calculate the Coronavirus Job Retention Scheme (CJRS) claim for wages and the employer's pension contributions when running the claim process.

Note: Any parameters created for 1st July 2020 onwards must be flagged as Flexible, even if employees are being furloughed for all of their normal hours. This is to ensure the correct calculations are made for furlough pay and additional costs, especially for pay periods spanning 2 months

Selection

Effective Date

Enter the date the parameters become effective or select one from the drop-down list.

General

Wage %age

Enter the percentage of pay to be claimed from HMRC. For example, 80% in line with the CJRS.

Wage Exclusion P.E. Category

Select the pay element category from the drop-down list to exclude the pay elements within it from the reference pay calculation, for example, the commission, discretionary bonus or tips. Items in this pay element category reduce the payment to your furloughed employees if you use the option to positively pay them instead of using a deduction pay element.

Wage Cap - Monthly

Enter the maximum wage amount in pounds (£), per month, per employee, that can be claimed from HMRC.

HMRC have capped this at £2500 per month.

Wage Cap - Weekly

Enter the maximum wage amount in pounds (£), per week, per employee, that can be claimed from HMRC. This will be multiplied by 2 for fortnightly payrolls and 4 for lunar payrolls.

Note: HMRC have confirmed that £576.92 should be used for the weekly cap.

Wage P.E. Category - Salaried

Select the pay element category from the drop-down list to calculate the notional furlough amount for salaried employees. This has no impact on the employee's pay, however, the 80% value calculated is used in the claim to HMRC.

Wage P.E. Category - Varied

Select the pay element category from the drop-down list to pay the 80% furlough amount for varied employees.

Employer's Pension %age

Enter the percentage of employer’s pension contributions to be claimed from HMRC. Under the scheme rules this is fixed at 3% of the minimum employer's automatic enrolment pension contributions (between the automatic enrolment earnings threshold and whichever is the lower of 80% of the pay and the £2500 per month cap).

Note: No longer applicable from August 2020. See Flexible Furlough Parameters screen for Suppress Pension Claim indicator.

Include Supp Runs

Select the check box to include any supplementary run amounts in the calculation of the wages report extract, i.e. when calculating the Feb 2020 wages for salaried employees or the same period from the previous year for varied employees.

Average All Employments

Select the check box to include all the employments of varied employees who have left and re-joined the organisation within the 2019-20 year, rather than just their latest employment.

Top-Up %age

Enter the percentage of pay to be calculated in Wage Calculation Extract as a top-up payment.

If your organisation is not paying 20%, then you should amend this field.

Top-Up P.E. Category - Salaried

Select the pay element category from the drop-down list to be used as the basis for the top-up value calculation using the value in the Top-Up %age field. This calculation applies to salaried employees.

Top-Up P.E. Category - Varied

Select the pay element category from the drop-down list to be used as the basis for the top-up value calculation using the value in the Top-Up %age field. This calculation applies to varied employees.

Fixed Basic Pay P.E. Category

Select the pay element category from the drop-down list to identify the salaries of salaried employees which will be included in the Select Employee Furlough Details Report CSV file.

Close Fixed Pay Excl P.E. Category

Select the pay element category from the drop-down list to continue paying the fixed pay element to employees if required.

Any fixed pay elements normally used to pay employees must be closed in Fixed Pay Element Maintenance when they are placed on furlough pay.

Wage Adjustment P.E. Category

Select the pay element category from the drop-down list to be regarded as regular pay for salaried employees, but not included as a fixed pay element, for example, regular overtime. This pay element category is included in the PAY ADJUSTMENT column in CSV files generated in Wage Calculation Extract.

Buttons

Flexible

Click this to display the Flexible Furlough Parameters, where you can define the parameters for use from 1st July 2020 onwards.

MD312S31

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