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Covid-19 related furlough – How do I record this in my payroll software?

The Coronavirus Job Retention Scheme has been put in place by the British Government to help protect jobs of employees who would otherwise have been laid off due to the COVID-19 pandemic.

Employers can use a portal to claim for 80% of furloughed employees’ (employees on a leave of absence) usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and minimum automatic enrolment employer pension contributions on that wage. Find out more about eligibility here.

Please see below how to record furlough wages in your payroll software, so that you are ready to claim eligible amounts when the HMRC portal is open, for:

  • Xero
  • Sage 50 Payroll
  • Quickbooks Payroll

Xero

Xero have produced this article for how to process time off during furlough.

Sage 50cloud Payroll

Please see this extensive guide from Sage on how to process furlough pay in relation to the Coronavirus Job Retention Scheme.

This information is from Sage’s useful Coronavirus Hub which is worth checking back for new content.

In regards to the payroll year-end, Sage has a step-by-step guide on how to do this and how to install the new update here.

Quickbooks Online Payroll

Quickbooks have created a guide found here on how to process furlough pay in their Standard Payroll, Advanced Payroll and Paysuite packages.

Regarding running you payroll year-end, please see this guide on how to finalise the year in Quickbooks, and what’s changing in the 2020/21 tax year.

FEATURING: Alana Hamson
Head of Digital Accounting, Alana is passionate about helping business owners utilise digital accounting technology to unlock productivity. She trained as a chartered accountant and… read more
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