Bookkeeping Bites – The ‘USUAL HOURS’ Conundrum

Consider this……. Employee A, contracted to 40 hours a week, @ £500 a week, returns to work on FLEXI-FURLOUGH 20 hrs a week, doing 4 hrs a day.

For a four week month, you will pay for the 80 hrs they work, Big G will cover the 80 hrs they don’t work, via a claim for flexi-furlough.

🤓 Question: How much would each of you contribute to employee A’s monthly pay?

🤓 Did you say “You £1000, Big G £800 (80% of £1000)”?

NOPE. Wrong.

The correct answer is actually:

💥 YOU: £1000.00

💥 BIG G: £769.03

WHY? “USUAL HOURS” people “USUAL HOURS”!

“Usual Hours” is a new friend of furlough and is the basis of ALL flexi-furlough calculations……. And without calculating this correctly, it could lead to incorrect furlough claims being made…..

To see a Big G example in full flow, check 3.8 out in the link below:

https://www.gov.uk/government/publications/find-examples-to-help-you-work-out-80-of-your-employees-wages/examples-of-how-to-work-out-80-of-your-employees-wages-national-insurance-contributions-and-pension-contributions#min-pay-flexi

Don’t get caught out by YOUR USUAL!

Stay safe everyone 😍😍😍

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