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Posted Mon, 20 Apr 2020 09:22:46 GMT by Jessica Bridgeman
when calculation furlough pay for employees on variable pay - who have been employed for over 12 month, I understand that I use the higher of either their 12 month average OR the same month from the previous year. Do I roll forward on the month for the previous year for each pay run? For example for March calculation I use march 19, for April calculation I use April 19?
Posted Mon, 20 Apr 2020 23:42:33 GMT by Thomas Murphy
I have an add-on to this question, as the guidance (even the further clarified guidance from 04/04/2020) still isn't clear. If I have staff on furlough who are on PAYE and have an annual basic salary of £14,000 but earn commission on around 15 sales per month to increase that salary to £45,000 annually, how do I calculate wage costs? Commissions are in their employment contracts, so can I assume this falls under "compulsory" commission? So would be calculated as "staff who's pay varies"??
Posted Wed, 22 Apr 2020 07:39:00 GMT by HMRC Admin 5
Hello Jessica.

Yes, if you use month by month calculation, you should roll the month forward for each subsequent monthly submission.

Thank You.
Posted Thu, 07 May 2020 14:11:00 GMT by HMRC Admin 5
Hello Thomas.

The external calculator can be used to calculate the grant amount for employees who are
•paid a fixed amount each pay period
•paid a variable amount each pay period
•paid-weekly
-fortnightly
-4 weekly
-monthly

•furloughed for-a full pay period
-part of a pay period

•not paid a top up amount during their furlough period
Posted Fri, 29 May 2020 10:23:29 GMT by Huma Khan
Good Morning, I have confusion over pay calculation. Here are some details. Employee start date: 19/02/20 Company pay cycle: 20th to 20th of every month Therefore, employee was paid for only two days in Feb 19th&20th. However, employees are paid on the last day of every month. The pay from 21/02/20 to 29/02/20 is included in March‘ s pay along with pay up until 20/03/2020. How much would the employee’s wages be on furlough? The pay for March before taxes was £1916.67. This covered the employees pay from 20th Feb to 20th March. Please could you give me an amount based on this information?
Posted Mon, 01 Jun 2020 10:32:00 GMT by HMRC Admin 3

Hi Huma,
Unfortunately we are unable to help you on the forum in respect of this matter.
You will need to contact the Coronavirus (COVID-19) helpline who will be able to help you.
Coronavirus (COVID-19) helpline

Posted Sun, 07 Jun 2020 08:11:01 GMT by James2019
Hi HMRC Admin Further to Jessica's query, relating to calculating furlough pay based on the yearly average or the same month from the previous year, I have a question. The guidance states that an employer 'may' claim the higher of the two options. Is this compulsary or is it optional which I claim for? Thanks
Posted Mon, 15 Jun 2020 11:46:00 GMT by HMRC Admin 3
Hi, 
As long as the 80% of their pay is based on either of those amounts then this is acceptable.
Posted Wed, 17 Jun 2020 16:25:34 GMT by Ostadar Diez
Hi, Currently the calculator (which appear to have recently changed) no longer gives the option to enter the value for the same period last year but only the annual earnings for those employed after 1st of Feb 2019. Could you advise if we should use the 80% of the higher of same period last year / annual average or just the annual average for those employed after 1st Feb 2019? Additionally, should we use the higher of either amount or just the average for those that have been employed after the tax year 2019/2020 (so after 06/04/19) or just the average? Thanks in advance!
Posted Mon, 22 Jun 2020 10:53:20 GMT by Cachan
Hi, I have been working for my current company for more than 10 years and on furlough since the 1st April 2020. I believe the furlough pay is based on the amount earned during the 2019-20 tax year. I have a fixed wage and then contractual commission if sales targets achieved. I have met all my sales targets so I received contractual commission during the 2019-20 tax year. As I have a fixed wage + contractual commission: 1-Will my earnings be considered as variable pay? 2-Should my furlough pay be based on the full pay(fixed wage and contractual commission) earned during the 2019-20 tax year so option b) from below should be considered when calculating my furlough pay as is the higher? If I am not mistaking contractual commission is the same as non-discretionary commission? Employees whose pay varies You should calculate 80% of the higher of either: a) the wages from the corresponding calendar period in the tax year 2019 to 2020 b) the average wages for the tax year 2019 to 2020 Thanks, Cachan
Posted Mon, 22 Jun 2020 11:23:46 GMT by wshaikh3332
Hi, I am on a zero hour contract and have variable hours every month. My employer put me on furlough and paid me only after asking however as per my calculation and on the website I have checked they are paying me less than I should be paid. I have been requesting to send me calculation of the furlough but its been 15 days and no reply. I worked for 74 hours and earned £629 pounds in April'19 however I am paid for £225 for 25 hours as furlough. Can you please help.
Posted Tue, 23 Jun 2020 07:51:00 GMT by HMRC Admin 3
Hi Ostadar,
The calculator has now been updated accordingly.
Posted Tue, 23 Jun 2020 08:23:00 GMT by HMRC Admin 3
Hi Cachan,
You will need to discuss with your employer regarding how they have calculated your furloughed payments as you state that you have variable pay.
Posted Tue, 23 Jun 2020 09:41:14 GMT by Cachan
Hi, Thank you for your reply. My employer has calculated my furlough pay based on the monthly wages and no including my contractual commission which I am disputing. Could you please advise 1) is the furlough pay calculated based on the 2019-20 tax year earnings? 2)should any non-discretionary commission earned during the 2019-20 tax year be considered when calculating the furlough pay? 3)is contractual commission the same as non-discretionary commission? 4)if my earnings varies, shouldn't my furlough pay be the highest of the following two options as per the government guidance? a) the wages from the corresponding calendar period in the tax year 2019 to 2020 b) the average wages for the tax year 2019 to 2020 I would like to know what furlough pay I am entitled to through a trusted source like this. If my fixed wage for the 2019-20 tax year was £15,000 and my final earnings were £27,000 because of the £12,000 I received as contractual commission, shouldn't I get an average of the £27,000(gross earnings)? I have asked my employer a few times the reason for no including my contractual commission however the say they can not include it because there are no sales so commission is not due. I still think they need to include the commission as this was earned during the 2019-20. Thanks.
Posted Tue, 23 Jun 2020 09:57:00 GMT by HMRC Admin 3
Hi wshaikh3332,
If your pay varies and you have been employed (or engaged by an employment business in the case of agency workers) for a full year, you will be entitled to the higher of either;
the amount earned in the same month last year
or
an average of monthly earnings from the last year up to a monthly cap of £2,500 gross pay. 
If you do not agree with this, you will need to discuss it with your employer.
Posted Tue, 23 Jun 2020 11:44:00 GMT by HMRC Admin 3
Hi Cachan,
The grant paid to your employer will be calculated based on the employees regular contractual pay, such as wages, non-discretionary overtime/fees/commission payments or piece rate payments. 
So if your commission payments are regarded as regular contractual payments (which HMRC cannot advise you of) then your furlough payment should include these.
Posted Tue, 23 Jun 2020 13:42:58 GMT by Cachan
Hi, Thank you for your reply. Could you please advise/confirm that the furlough pay is calculated only on regular contractual pay, such as wages, non-discretionary overtime/fees/commission payments or piece rate payments received during the 2019-20 tax year so no related to the 2020-21 tax year? My employee confirmed that my commission is contractual/non-discretionary. Because there are no current sales=no commission my employ thinks commission should not be included on my furlough however I understand it is the commission earned during the 2019-20 tax that needs to be included on the furlough pay. Sorry for the number of questions as I want to make sure I have the right answers before I challenge my employee. Thanks
Posted Tue, 23 Jun 2020 14:40:52 GMT by wshaikh3332
Hi, Thank you for the reply. The issue is I have emailed my office thrice and tried to call them but no response. Is there any other way? I am really stuck.
Posted Tue, 23 Jun 2020 21:50:13 GMT by Cachan
Hi, Sorry I use employee when I I meant to say employer on my previous post. I meant: , Thank you for your reply. Could you please advise/confirm that the furlough pay is calculated only on regular contractual pay, such as wages, non-discretionary overtime/fees/commission payments or piece rate payments received during the 2019-20 tax year so no related to the 2020-21 tax year? My employer confirmed that my commission is contractual/non-discretionary. Because there are no current sales=no commission my employer thinks commission should not be included on my furlough however I understand it is the commission earned during the 2019-20 tax that needs to be included on the furlough pay. Sorry for the number of questions as I want to make sure I have the right answers before I challenge my employer. Thanks
Posted Wed, 24 Jun 2020 06:48:00 GMT by HMRC Admin 3
Hi Cachan,
We cannot comment on how your employer has worked out your indiviudal furlough payment.
This is something you will need to dicuss with your employer based on your contract.

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