www.iva.co.uk

Hi is there a formula for calculating a 5 week month my understanding it should be weekly x 13 /4 as an average, I need to write to my IP to discuss this i want to make sure if there is a formula all IP use or just accountants?

13/4 or 52/12 both work fine

Hi

I usually multiply a four week wage by 13 and divide by 12 to give a monthly figure

Regards

I do the same - or for weekly paid employees times by 4.33

Even if you times the weekly amount by 4.33 it reverts back to the same as total divided by 12.
The issue is surley they must average out the 5 week months in with the 4 week months if the average is used to format the monthly maximum then for 8 months you wont hit it and for 4 months you will be over the top
I am a quanity surveyor and i know maths and figures very well and i cant see the logic in how Mc duff work out that i am over for the 4 months but not take into account the 8 months that I am under all i get is you have to budget your expenses to cover these periods
please help!!!

With our four-weekly paid clients, we apply the 10%/50/50 formula over 13 pay periods rather than 12 to be fair.

Mel the problem I think is I am paid every week and for 4 months of the year I recieve 5 wage slips and for the other 8 months I recieve only 4 they are basing the over earnt monies on the 4 months where I gain but not adjusting the remaining 8 where there is a short fall,
does this make sense?

Mel, can i just ask my partner is paid 4 weekly - will that mean our expenses will be worked out 4 weekly and our iva payments made 4 weekly too? think if this was the case would help alot with the our household budget im trying to put together on excel lol.

I now understand Surveyor Sam. With our weekly paid employees, we actually run the calculations over a 13 week period, or a quarter. This gives a uniform amount of weeks eachquarter to sample from and seems much fairer. What do you think?

I would be happy to work to a 4 weekly budget for you Spanna, if you would find this helpful with budgeting.

Thankyou Mel lets hope Mcc Duffy are as understanding!!

Hi Surveyor Sam,
I am paid weekly and for uplift payment calculations I convert my yearly basic wage into monthly net basic as 52 x (weekly basic net wage) divided by 12, and then 10% of this is my threshold for the 10/50/50 rule.

Example if your weekly net wage was £250:

52 x £250 = £13000 (divided by 12 = £1083.33)
10% of monthly net basic wage is £108.34

For the 10/50/50 rule the first £108.34 net of any overtime earned in a calendar month whether it`s a four or five week month would be yours, anything after that would be split 50/50 between you and your IVA.

I had the problem initially where my case manager was suggesting that my fifth weeks wage in a five week month was to be treated as `extra earnings` but all was sorted out, as this is obviously not the case and you would be getting penalised financially for being paid weekly as against monthly.

I am sure that it was your case that caused us to change our minds, Goosed, as to the method of dealing with uplifts for weekly paid people. Althoough there was some unfortunate confusion for you, many other of my clients have benefitted greatly from the thoughts you shared with us at the time.