just curious, why can someone on a weekly paid wage average a bonus over 3 months (as lest face it you can easily slide about 1K under the limit over a 3 month period), where as the monthly wagers don't get that luxury.
The calculations are based on a weekly basis - so 13 weeks actuals are compared to 13 weeks basic figures, You cannot equate weekly wages to monthly wages, so this is the best method of calculation. All of my clients are advised of this, and confirm to me that they understand the calculations, before committing to signing their proposals.
Sounds to me like your IP is just acting quite reasonably: If all you get is £200-£400 once a year, it is probably barely worth the admin. time to write to you to ask for half of it.
I'm sure if they wanted a piece of your annual bonus that badly, you would have heard something.
Asking your employer for 'time of in lieu' or to split any bonus over a longer period is also quite a good suggestion where this may be an option.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
My husband rarely gets overtime in his current job. But the past few weeks he has had overtime. Not sure of how to pay additional payments I called my IP only to be told it would get looked at at our next review which is April. I'm a bit worried now that we could get hit with a huge bill or possible breach ??
Not all IP's work this out the same way. My colleague and I both have IVA's. She's with FJ, I'm with GT (started with BE). We both get an annual bonus, I have to pay over 50% as BE didn't allow the 10, 50, 50 rule and she has been told that she can keep 10% of her annual salary and as the bonus is under that she keeps the lot.
Perhaps you and your colleagues have differing terms to their IVAs Leese? And if anyone is worried about whether they owe money now, then do pester your IPs to do an early review - or to let you have details of how to calculate monies due. In my firm we provide a spreadsheet matrix to assist with this at the beginning of the year and at each annual review to be used over the following year.
Yep. without a doubt we do. That was my point really. Michael said -
the rule applies to what you earn each month which penalises those who receive an annual bonus over those who get a monthly bonus. However this is Protocol.
She set up her IVA last year, so I guess protocol but FJ work it out on annual salary so the OP's IP may be doing the same thing.
You have done the right thing in checking with your IP. Sounds like they will look at this come review time. If this OT comes to less than 10% of your normal net income, you might get to keep it.
Best to keep half of the net amount received set aside until after your review though, just in case you have to pay it over.
don't forget to properly review your expenditure as well. It may be that increases in living costs will wipe out the OT anyway.
This whole issue seems to be another area that is inconsistently applied. I guess it is down to pot-luck, as well as employment status and how frequently you are paid.
Most importantly though, how the 10/50/50 rule is applied (or a straight 50/50 in some cases), should be detailed in your IVA, so check your wording carefully before spending the Xmas bonus.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
It should not be inconsistently applied - the wording of the protocol is pretty clear that persons have to account for these uplift monies on a monthly basis.
I expected to pay over half of his overtime but told they would sort it on our next review. Worried my payments will increase after review and we may not have the overtime then.
Im going to keep half of the overtime incase we have to repay it.
I would have preferred to pay it over as earned which is what is in all my paperwork. We also have the 10/50/50
Thankyou
There should be nothing to stop you paying over the monies as they are earned Jeano99, and an IP who refuses to accept payments would then appear to be very negligent if at the end of the year there were none available because you had spent them!
