How are we to show the furloughed reduction in payroll ? do we change the annual pay or show as a reduction?

Hello Lucysmith

You would need to zero the salary and record differently on the payroll. Depending on which payroll you are using you using, Paysuite, Standard or Advanced?

If you are using Paysuite you would need to record this as variable pay. In Advanced and Standard, you would need to create a new pay category/additional pay item called furloughed. relating to the 80% of the employees wages, this will be subject to PAYE, NI, and pension, and submitted as normal, you will claim this back, inc employers ni and pension via the HMRC portal. If you are wanting to pay the reaming 20% of the employees wages, you are not required to, you would just include this as their normal pay category, reducing it by the 80%.