If choose to furlough employees, do we still pay them first

katy123

Hi All, 
As an employer of a Ltd company, if you choose to furlough employees, do you still pay them or do you have to stop paying them? The HMRC portal isn't ready until end April? Thanks

epm-84

My understanding is you run payroll as normal - with furloughed employees on at least 80% of their normal salary up to £2,500 (anything over that you have to fund) and then give the amounts from payroll to HMRC.  It's not clear exactly when employees have to be paid, in the case of some businesses I imagine they'll have to defer payment until the grant from HMRC is received as they won't be able to afford to make payments prior to that.

katy123

epm-84 said:

My understanding is you run payroll as normal - with furloughed employees on at least 80% of their normal salary up to £2,500 (anything over that you have to fund) and then give the amounts from payroll to HMRC.  It's not clear exactly when employees have to be paid, in the case of some businesses I imagine they'll have to defer payment until the grant from HMRC is received as they won't be able to afford to make payments prior to that.

 Thank you so much, so continue with payroll and inform our accountant to furlough staff.