Payroll furlough tools added to FreeAgent and Xero
The UK’s Coronavirus Job Retention Schemes provides a lifeline for businesses struggling to come to terms with the pandemic.
Eligible employees can be ‘furloughed’ and the government will pay 80% of their pay, up to £2,500 per month. Employers can also top this pay up to 100% if they wish.
You can find out more details about the scheme on the .
To make it easier for businesses to access this scheme, Xero and FreeAgent have added new tools to their payroll systems.
Furloughing staff on FreeAgent
If you use FreeAgent’s payroll system, you can automatically amend an employee’s payslip details to include furloughed days. You’ll also be able to generate an automatic monthly report, complete with all the details you’ll need for your Job Retention Scheme claim.
You can still access these details if you don’t use FreeAgent’s payroll system, with FreeAgent’s free , but it requires some more manual input.
Read the for more information.
Furloughing staff on Xero
Xero has also added a Job Retention Scheme tool to its payroll system. The tool makes it easier to record furlough leave and can also calculate claim values for national insurance and minimum pension contributions.
For step by step instructions on how to record furlough leave, see the .
Xero have also added a COVID-19 sick leave option for employees that need to self-isolate. This means that employees can earn sick pay from day one instead of after four consecutive days.
HMRC is currently creating a system that will help small and medium-sized businesses claim two weeks of self-isolation sick pay. When this launches, eligible businesses will be able to use information from Xero to support their claim.
Read Xero’s guidance for .
At Cloud Accountant, we are working hard to support businesses that are affected by the coronavirus. If you need any more assistance with furloughing workers, or another part of your finances, speak to a member of the team today. Call: 0808 501 7053.