Statutory Paternity Pay is available for qualifying employees (all genders) whose partner is having a child, adopting a child or having a baby through a surrogacy arrangement.
It is available for one or two weeks and must be taken consecutively if both weeks are taken. It is paid at the lower rate of either 9/10ths earnings in the relevant period or the SPP rate in force for the tax year.
To pay SPP you need to go to Employee Details> Statutory Payment screen. You will then need to click the green 'Add' button on the top right of the page which will allow you to select SPP from the dropdown menu.
Complete the tick box to confirm if this is an adoption or not, this will change the 'baby due date' to 'matching date'.
Once you have completed the start date and either the baby due date or matching date the system will automatically calculate the entitlement and pre-populate any amounts due.
1. The employee must have earned over the lower earnings limit (LEL) for the relevant period in order to be eligible for SPP. If you need to override the employee's earnings (you may be transferring payroll software mid year) you need to tick this box and type the average weekly earnings figure in the box. You can then adjust the number of SPP weeks already paid to reduce the total SPP weeks payable.
2. If you click the 'View log' it will display the information used to calculate eligibility including the employee's start date and average weekly earnings calculation.
3. If you offset the SPP you need to tick this box. This has the effect of reducing any salary payment by the amount of SPP paid so no net effect to the employee's pay. If left unticked then the employee will only receive the SPP payment.
Any payments due will be listed with the status of the payment e.g. pending or processed.
Under 'Advance Settings' you have 4 options:
- Set employer pension protection - Any figure entered here will override the employer pension amount in the pay run.
- Do not pay - If you select this option you can choose a reason from the dropdown menu. This will then create a link to the SPP1 form for you to complete and give to your employee.
- Pay lump sum - If you wish to pay SPP in one lump sum.
- SPP Adjust - This can be used to apply any adjustment to SPP within the pay run, useful if a backdated pay rise has affected SPP amounts.
You can then, if you wish, add an attachment and any notes to the employee's record. When this has been saved it will create an entry against the employee which can be edited by clicking on the pencil icon, deleted if no payments have been made by clicking the bin icon or a payment schedule can be downloaded in PDF format or sent to the employee's portal.
Payments will be applied automatically in each pay run and the record will be updated after the pay run has been finalised.
To view the amount of SPP recovered from HMRC you need to go to Reports> P32 Report> then click on the NI Deductions Summary tab.
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