In any business, employees will occasionally require time off due to factors such as sickness, maternity, paternity, or adoption leave. As an employer, you'll need to determine whether your employees qualify for the relevant statutory payments in relation to their absence and make the necessary payments to them.
At Pro Payroll Services, we will take care of all the necessary calculations for you, including producing maternity, paternity and adoption leave schedules if required.
Reclaiming Statutory Payments
When making statutory payments to employees, you are entitled to reclaim some of the money back towards certain payments from HMRC by reducing the amount of PAYE tax and NI you pay each pay period. In some cases, advance funding can be requested if your PAYE liabilities are too low to cover the statutory payment being made.
We'll take care of all aspects of reclaiming for you, ensuring we reclaim the maximum amount possible from your PAYE liabilities and minimising the impact on your business.
Statutory Sick Pay (SSP)
Statutory Sick Pay is paid to employees who have been off sick for four or more consecutive working days, and have earned enough to qualify for the payment. SSP is paid for a maximum of 28 weeks. Businesses are currently unable to reclaim SSP.
Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP)
SMP or SAP is paid to eligible employees for up to 39 weeks. it is paid at 90% of the employees average weekly earnings of the first 6 weeks, and a reduced rate of £172.48 (or the current statutory rate) or 90% of the employees average weekly earnings (whichever is lower) for a further 33 weeks.
Shared Parental Pay (ShPP)
ShPP can be paid to eligible parents for a maximum of 37 weeks once their partner ends maternity or adoption pay at their place of work. It is paid at the same rate as SMP/SAP.
Statutory Paternity Pay (SPP)
SPP can be claimed by a partner for one or two consecutive weeks, providing that their earnings and length of service meet the relevant criteria.
As a professional payroll service, you can rely on us to ensure that statutory payments are calculated accurately and in line with current legislation. We can also provide you with a Statutory Pay schedule for each relevant employee so that you can provide your employee with information on exactly how much they will receive each pay period.