Solution Properties
Solution ID:
222001000101417
Last Modified Date:
Mon Oct 28 08:58:28 UTC 2024
Taxonomy Path:
Case category//How do I...//processing
Author:
[email protected]
Recording Statutory Maternity Pay (SMP)
Description

You can include Statutory Maternity Pay as part of processing your pay run.

 NOTE: Employees can't take holiday or get holiday pay while on maternity leave. However, you can arrange with your employee to take it before or after maternity leave.

Cause
Resolution
  1. Go to Pay Runs, and select Process Pay Run.
  2. Check the pay date is correct, then select Next.
  3. Select the relevant employee. Select Add Absence then Maternity.
  4. Complete the following information:

     

    Child Due Date Enter the date that the child is due to be born on.
    Documentation Received If the employee has notified you of her maternity using Form MATB1, choose Yes.
    Qualifying Week The 15th week before the baby is due to be born.
    Start Date The date the employee wants to start her maternity leave.

     
    End Date The date the employee wants to end her maternity leave.

    Select Pension Settings

    Pension Earnings

    		 To include SMP in pensionable earnings, select this check box.
    Find out more about pensionable earnings and automatic enrolment. Read our article Common pension terms.
    Qualifying Earnings

    To include SMP in qualifying earnings, select this check box. Find out more about qualifying earnings and automatic enrolment. Read our article Common pension terms.
  5. Select Save.

Payroll calculates SMP in whole weeks only, from the maternity start date. For example: If the maternity starts on Wednesday. The week would be Wednesday to the following Tuesday. 

 TIP: If you are new to the payroll software, you may need to manually adjust the average weekly earnings figure. For more information about this, read the Override AWE section below. 

If there’s not enough information to calculate the Average Weekly Earnings (AWE), this option appears:

Issue Certificate SMP1 If the employee is not entitled to SMP because her earnings are less than £123, click the SMP1 link and provide her with the form.
Manually set the AWE value

You may have Payroll part-way through the tax year. If there isn't enough history to calculate the average pay, select Manually set the AWE value. Enter the average weekly pay.
  1. Select Save.
  2. Complete the rest of the pay run as normal.

Employers need to keep paying pension contributions while employees are on maternity leave. These contributions should be based on the pay the employee was getting before their leave. You can set the pension contribution to a fixed amount in the pay run using the Manage contributions option. When the employee returns, you can change it back.

Override AWE

Sometimes the system does not have enough history to calculate the Average Weekly Earnings (AWE). If you have moved to a new payroll system recently, for example.

You have to calculate the AWE and override the system-calculated figure. 

Employees receive the following based on 100% of their normal average earnings:

  • Maternity Pay
  • Paternity Pay
  • Shared Parental Pay
  • Parental Bereavement Pay
  • Adoption Pay

Adjust the figure

  1. Create and save the statutory payment as normal.
  2. From the absence page, select the absence you want to edit.
  3. Select the Override AWE check box.
  4. Enter the correct AWE figure and Save.

Stop SMP payment

If the employee returns to work, change the return date in the absence record.

  1. Go to Pay Runs, then select Process Pay Run.
  2. Select Next.
  3. Select the relevant employee. Select the Maternity absence.
  4. Change the End Date as required.
  5. Select Save.
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