27 Mar 2020
Furlough working example for reference (EX ICAEW) :-
X Ltd employs Mr A at an annual salary of 24,000 so £2,000 per month. Mr A has opted out of auto enrolment.
Each month, Mr A currently receives net pay of £1,665 which is after deducting PAYE of £191 and employee NIC of £144. In this salary, the employer pays employers’ NIC of £174.
The available grant for the employer is the lower of:
(a) 80% of (£2,000+174), and
So a grant of £1,739.
If Mr A had not opted out of auto enrolment, X Ltd would also be making pension contributions on his behalf. If so, the grant is based on 80% of (Gross salary +Employers’ NIC + employers pension contribution paid), subject to the monthly cap of £2,500.
As ever, we are here for you.
Kind regards from the team at cbaSadofskys