Why does SMP not calculate for my employee's second child? If your employee has received SMP before, the Year to date values section of their record stores the number of weeks paid. As a result, no new entitlement will calculate. To calculate a new SMP entitlement, simply remove these values. - On the Employee List, double-click the employee.
- click the Employment tab then click YTD Values button.
- Click the Statutory Payments tab.
- In the Maternity Pay section, clear the value from Weeks SMP Paid.
- Click OK then click Save then click Close.
What do I do if my employee's not entitled to SMP, but is taking maternity leave? If your employee isn't receiving any payments from you, set an employee to on hold. This ensures HMRC knows you still employ them, but they aren't receiving payments.
If my employee is receiving SMP over payroll year end, when do they get the new rate? In a new tax year, the new rate of SMP takes effect from the employees' first full statutory week of the new tax year. An employees statutory week begins on the first day of their absence. The new rate of SMP applies from the first day of your employees statutory week that falls after the first Sunday in April. Use our guide on when new statutory payment rates apply at payroll year end.
Which reports show SMP information? The following reports show SMP information: | Pre-update reports - Payslips
- Payment Summary (Part 1)
- Analysis of Payroll Totals
- Cost Centre/Departmental Payments - Wages/SPs/Gross
| Post update reports - Cost Centre/Departmental Analysis of Statutory Payments
- P11 Deduction Card (NIC Details)
- Payment Summary History Part 1
- Form P32 Employer Payment Record
|
How do I enter statutory funding information from HMRC so that it appears on the P32? To enter details of funding received from HMRC: - Click Company then click Settings.
- Click the Statutory Funding tab.
- Enter any funding received for each month in Statutory Payments Funding Received.
- Click OK.
Find more in our guide on how to enter statutory funding from HMRC.
Which forms do I use when dealing with SMP? - MATB1 Maternity Certificate - The employee must provide you with medical evidence of their pregnancy. This is usually a MATB1 form from their doctor or midwife. You can accept and document signed by a doctor or midwife, that includes the date the baby is due. Your employee must give you this evidence no later than 21 days after the start of the maternity pay period. Or 21 days from the date the baby was born, if the baby's born early
- Form SMP1 - If an employee isn't entitled to SMP, give them Form SMP1. This is available from the gov.uk
How do I know if I'm entitled to small employers' relief for SMP? All employers can reclaim some, if not all, of the statutory parental pay that they pay to employees. Your company qualifies for small employers' relief if your total NI contributions were £45,000 or less in the last complete tax year. Calculate this before the employee's qualifying week. Use our article to find out what is Small Employers' Relief (SER)?
How can I process SMP manually? Sage 50 Payroll can calculate and employee's SMP automatically. However, if you prefer to calculate and process it manually, use the manual Statutory maternity pay (SMP) function.
Can my employee work for an occasional day without it affecting her SMP? Yes. An employee can work up to ten days during their maternity pay period, without losing statutory pay. These are keep in touch (KIT) days.
Why is the SMP 1p too much? If you begin a maternity pay period mid-week, SMP appears to be 1p more or less than it should be. For example, a weekly paid employee is entitled to six weeks at a higher SMP rate of £270. They received four days SMP in the previous pay period. This pay period, they're due a full week's SMP. This is broken down into three days from the first SMP week and four days from the second SMP week. Sage 50 Payroll calculates an SMP payment of £270.01. This is due to the rounding when calculating partial weeks. HMRC's aware of this rounding and are happy for you to pay the employee the amount calculated.
What do I do if an employee leaves when they're receiving SMP? Normally, you stop paying SMP after 39 weeks. If an employee in receipt of SMP leaves your employment and isn't going on to work for another employer, they receive the remainder of their full 39-week entitlement. You pay any outstanding SMP in their final pay. However, if they're going to work for another employer, only pay SMP up until their leave date: The employee isn't going on to work for another employer - Click Payroll then click Enter Payments.
- Select the Select this check box if your employee is leaving and this is their final payment check box.
A message appears advising that Sage 50 Payroll has calculated the outstanding amounts for the employee. The software calculates the remainder of the employee's 39-week entitlement and adds it to their final pay. The employee's going on to work for another employer - On the Employee List, double-click the employee.
- Click the Absence tab then click SMP.
- Enter the employee's leave date in Returned to Work.
- Click OK then click Save then click Close.
- Click Payroll then click Enter Payments.
- Select the Select this check box if your employee is leaving and this is their final payment check box.
A message appears advising that Sage 50 Payroll has calculated the outstanding amounts for the employee. Outstanding SMP calculates only up until the date you entered in the Returned to Work box. For more information, refer to gov.uk.
If an employee returns early from maternity leave, can they qualify for SSP? Employees aren't entitled to SSP during their maternity pay period (MPP) of 39 weeks, even if they return to work early. If you try to enter SSP during the MPP, the following message appears: 'This absence does not qualify for SSP. The period of sickness entered overlaps with another statutory payment.' If they're off sick for one or more full weeks within the MPP, they receive statutory maternity pay for those weeks. A full week is an SMP week, which runs from Sunday to Saturday. If they're off sick for part of a week, they aren't entitled to receive SMP. However, if the employee hasn't used all ten keep in touch (KIT) days, they could class the days they were at work as KIT days. They receive SMP for the full week. Sage 50 Payroll can't process this automatically, therefore you must make any additional SMP payments manually. Use our guide to process manual Statutory maternity pay (SMP). You must also manually increase the SMP weeks paid value: - On the Employee List, double-click the employee.
- Click the Employment tab then click YTD Values.
- Click Statutory Payments then enter the value in Weeks Paid SMP.
Find further information about how employee scenarios affect SMP on gov.uk.
Does SMP start early if an employee is off work sick before their maternity pay period? Special rules apply if an employee is on sick leave due to pregnancy-related sickness in the four weeks leading to the start of their maternity pay period. There’s a tick box in the SMP section of the employee record to trigger this. 
An employee is on sick leave leading up to the Due date. Their SMP pay period/maternity leave will automatically start four weeks, from the fourth Sunday before the Expected on date. Find out more on gov.uk. [BCB:47:Sales - SEB:ECB] [BCB:191:UKI - #GetMoreFeedback:ECB] [BCB:141:Limitless - 50 Payroll - Statutory Payments:ECB] |