Running payroll during corona virus

Caroleanne

My company will be using the employer 80% payment by the government as we have been told to close.
We run a weekly payroll, I have said that the payroll will still be run weekly, but there is a new portal opening up for the reporting, they seem to think that they will be running a monthly payroll. Also they don’t seem to want to pay anyone until they get funding. But they won’t get funding unless they run the payroll.

amurray

Hi Caroleanne,

An employer cannot state that they 'wont pay staff' until they get the funding (this would go against the employees contracts of employment, which the employer would be in breach of!)... the government funding isn't due to issued to businesses for another month or two if I am not mistaken.

Like you said if you are not running the payroll, HMRC will not see that you are paying your staff, as they will not be receiving the monthly RTI (FPS submission).

Also as you suggested your employer thinks they'll be running a monthly payroll, but your employees are paid weekly. The employees would still need to be paid weekly as this is a contractual agreement between the employer and employees. Any contractual change I.e. changing from being Weekly paid to Monthly paid, needs a staff consultation period, with the appropriate reasoning and procedures followed.

Alot of employers are worried in these current uncertain times, it seems they may feel they will miss out and not receive the government funding. All I would say is to stress to them just how important it is to continuing running the payroll and submitting these RTI/FPS Submissions to HMRC. As without doing so 1) the employer is in breach of the employees contracts of employment and 2) HMRC will assume you are not paying your staff, which could have an effect on later trying to submit a claim for the Furlough monies.

Hope the above makes sense, it was a bit of a woffle on, however I've tried to explain things as best I could. I also have had similar challenges in the workplace advising on such matters. Again employers are worried cashflow and getting access to this 80% pot. However it will come to the business, aslong as the guidance/procedures are being followed which have been communicated from GOV/HMRC.