Recording Statutory Paternity Pay (SPP)
Description

You can process paternity leave in Payroll for both adoption and birth. 

Cause
Resolution

From the 2024/2025 tax year, employee's can take two separate weeks of SPP/SPPA within a year of the birth or adoption of their child. 

Unless both weeks are taken together, each instance of SPP must be recorded seperately.

  1. Select the Pay Runs tab, then select Process Pay Run.
  2. Check the pay date is correct and select Next.
  3. Select the employee and then select Add Absence.
  4. Choose Paternity (Birth), or Paternity (Adoption) and complete the following details:
Item Description
Child Due Date Birth only: Enter the date that the child is due to be born.
Documentation Received The employee must tell you they are taking paternity leave using Form SC3, SC4 or SC5. Choose Yes.
Qualifying Week Birth only: The 15th week before the baby is due to be born.
Matching Date Adoption only: Enter the date the adopted child matched with the adoptive parents.
Placement Date Adoption only: The date the adopted child placed with the adoptive parents
Actual Date of Birth Birth only: Enter the date the baby is actually born.
Start Date Enter the date the employee wants to start their paternity leave instance.
End Date Enter the date the employee wants the instance of paternity leave to end. 
Pension Earnings To include the SPP in pensionable earnings, select this check box. Find out more about pensionable earnings. Read our article Common pension terms (opens in new tab).
Qualifying earnings

To include the SPP in qualifying earnings, select this check box. Find out more about qualifying earnings. Read our article Common pension terms (opens in new tab).

  1. Select Save.

     TIP: You may need to manually adjust the average weekly earnings figure. For more information about this, read the Override AWE section below.

    There may not be enough information to calculate the average weekly earnings (AWE). This option appears:
Issue Certificate SPP1 If earnings are less than £123 per week, the employee has no entitlement to SSP. Download the SPP1 form from the HMRC website to inform them. Statutory Paternity Pay: non-payment explanation (SPP1) (opens in new tab).
Manually set the AWE value Sometimes there’s not enough history to calculate the average pay. Select Manually set the AWE value > enter the average weekly pay.
  1. Select Save.
  2. Complete the pay run as normal.

 TIP: Payroll calculates SPP in whole weeks only, from the leave start date. For example, leave starts on Wednesday. The week is from Wednesday to the following Tuesday. 

Points to note

  • Employers must continue to pay pension contributions whilst employees are on paternity leave. Base the employer contribution on notional pay. This is the pay the employee was receiving before they went on leave

  • Base employee pension contributions on the actual pay they receive while on leave

Find further information on SPP on the GOV.uk website. Read Statutory Paternity Pay and Leave: employer guide (opens in new tab). 

Override AWE

Sometimes, there's no history to calculate the Average Weekly Earnings (AWE). If you have moved to a new payroll system recently, for example.

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

The employees get the following payments based on 100% of the normal average earnings:

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

 

To 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.

 

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