Countingup, the number one banking and accounting app in the UK, has launched a free furlough calculator, to help small businesses impacted by coronavirus(Covid-19).
This is in addition to a grant calculator which the company launched on 8th April 2020 to help self-employed sole traders determine grants under the SEISS (Self-Employment Income Support Scheme). In the first day more than four thousand had used the calculator.
The new furlough calculator helps employers calculate the grant available to them under the JRS (Job Retention Scheme). Employers looking to top up their employees salaries can also see the actual cost after subsidies. They can interact with the calculator to flex the top up amount and re-assess the cost.
Tim Fouracre, founder and CEO of Countingup said, “The government is planning to launch the Coronavirus Job Retention Scheme towards the end of April. In the meantime, an employer can use our calculator to predict how the scheme will help them keep salary overheads down and their employees happy.”
The calculator also helps employees see what their take home pay would be if
furloughed. How much it would cost their employer to top them up and the
difference compared to normal. Fouracre added, “This furlough calculator will help employees who have been, or are about to be, furloughed. They can see the impact of furlough on their net wage and plan accordingly. Employees on just the government subsidies are likely to feel the pinch on their cash flow, and this tool will help them adjust – or find a middle ground with their employer.”
The furlough calculator breaks down either annual, monthly or weekly salary.
For employees it shows details about income tax, national insurance contributions and net wage. For employers it shows the cost of employer national insurance contributions, level of government subsidy and total cost to the employer.
Fouracre added, “It’s our mission at Countingup to make it easier to run a
small business. Right now, it’s really tough running a business. Some of the
team took time out from our banking and accounting app to launch this
calculator. We hope it helps both our customers and others whose businesses
have been impacted by COVID-19.”
Job Retention Scheme
All employers in all sectors (including both profit and not-for-profit) will be eligible for the Coronavirus Job Retention Scheme (the “Scheme”). Under the Scheme, HM Revenue & Customs (“HMRC”) will reimburse employers for the following employment costs of “furloughed employees” (i.e. those employees placed on leave of absence):
● 80% of monthly salary up to £2,500 per month (tax will be due on this)
● and Employer National insurance contributions
● and minimum pension auto-enrolment
● (more guidance will follow on the employer’s NICs and pension
contributions at a later date).