Statutory Adoption Pay, Maternity Pay, and Paternity Pay
The change of employment start date may affect employee SAP, SMP and SPP payments.
Statutory Sick Pay (SSP)
The SSP calculation uses eight weeks gross pay from a particlular period. This may not be available after a change of company status.
An employee can have SSP from the day they start with the company. They must meet the qualifying criteria. This includes their Average Weekly Earnings (AWE). Their AWE must be being over the NI Lower Earnings Limit (LEL). To calculate the employee’s AWE, see the HMRC Employer Helpbook for Statutory Sick Pay – E14.
You may have processed SSP in the eight weeks previous to changing the status of your company for any employees. You must enter historical SSP information. This is so the system can calculate linked periods of incapacity for work.
Student loans
A change of legal status doesn't affect an employee’s student loan obligation.
If their earnings are above the annual threshold, they must continue their repayments.
Attachment of Earnings Orders (AEO)
There is a legal requirement for the employee to continue to repay AEOs. The deduction continues as normal. The employee attachable earnings must be above the protected earnings value.
However, you need to set the AEO up again, in the new payroll.
Default Payment and Deduction Values
Payments and deductions must be set up in the new business.