In response to the UK government’s Coronavirus Job Retention Scheme, we’ve been working hard to respond to a rapid pace of change. With new and frequent updates from government, our focus has been on working quickly to find the best solutions to help you and your business navigate through this challenging time.
We were pleased last week to be able to launch new functionality enabling businesses to record furlough leave for eligible employees in Xero Payroll. We’ve also added COVID-19 self isolation as a sick leave option for employees who are required to self-isolate, so they can earn sick pay from day one instead of the usual four consecutive days.
Furlough leave in Xero
Furlough leave is now available through Time Off, giving businesses a simple and accurate way to comply with the Job Retention Scheme. HMRC will provide a grant to cover 80% of furlough employee pay, up to £2,500 per month.
The scheme also covers associated furlough costs for the employer’s national insurance and minimum pension contributions. Furlough employees won’t be able to work, but they’re free to do training, volunteer for frontline services or support those in need during COVID-19.
To manage furlough leave in Xero Payroll, we’ve added the following features:
- the ability to support 80% of an employees’ regular earnings, further calculating and storing the employer claim values for national insurance and minimum pension contributions
- flexibility to record furlough periods as and when they occur
- the opportunity for payroll managers to top up an employee’s wage without including it in the claim value.
See our FAQs on processing furlough leave in Xero Payroll
Updates for furlough leave coming soon
The information prepared within the pay run to determine the scheme claim value will be stored in readiness for the scheme claim report.
While this feature is not yet available, Xero’s product team is working hard to have this live by the end of April.
Update: this feature is now available. See our updated FAQs on processing furlough leave in Xero Payroll
See how to record furlough leave in Xero Payroll
To learn more about how to record furlough leave in Xero Payroll, see below to catch up on the recording of our demo last week with Xero Payroll specialist Jane Mitchell.
Or check in on our Xero Central guidance on how to record furlough leave step by step.
Statutory sick leave now available
We’ve also added COVID-19 self isolation as a sick leave option for employees who are required to self-isolate, so they can earn sick pay from day one instead of the usual four consecutive days.
HMRC is currently working on a process to help small and medium-sized businesses reclaim two weeks of self-isolation sick pay – once this is ready, we’ll help you capture these records and support the reclaim process.
See our guidance in Xero Central to learn more about setting up statutory sick leave.
Learn more about Xero Payroll
If you don’t yet use Xero Payroll, you can learn more about it on our website and get three months free for up to five employees as part of your Xero Business Edition subscription.
Or join our webinar to learn about the key features of Xero Payroll and answer any questions you might have.
how and when can we print the scheme claim report
Hi Neil, we are aiming to have the scheme claim report live by the end of April. We’ll update as soon as we can when that’s available.
Hi there is there any update on when this will be live?
Hi Charlie, sorry – there’s been a slight delay with claim report – it will be available very soon (early May).
Any update regarding the claim report being available?
Will all payroll users be notified when it is available?
Hi Tom, thanks for getting in touch. The claim report is still being worked on so it’s not available yet but we will let you know as soon as it is.
Is the report option ready now?
Hi Sylvester, the team is still working on the claim report and it’s not quite ready yet. We will let you know as soon as it’s available. I’m sorry for the delay.
Hi Charlie, we hope to have an update from the team working on it very soon. We’re so sorry for the delay.
Hi, I’ve just read that HMRC are advising that we use calendar days to calculate furlough periods but I’ve noticed that Xero works them out based on working days. Is this going to cause an issue with claims? Thanks
The NIC and Pension XERO is calculating is completely different to the one that the govenments calculator is working out. Is anyone else having this issue? The Gov calculator is saying the NIC and Pension is much higher.
Still any news on the report? We have been told end of April, early May and very soon. I need to get my claim in to HMRC now. If I don’t I will not have enough cash to pay my staff another month of furlough.
Hi Charlie, we’re so sorry for the delay. Our team are doing everything they can to have the report available as soon as possible. If you need any help inputting the figures from HMRC’s calculator into Xero, please reach out to our support team directly > https://central.xero.com/s/contact-support.