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Former Member
Nov 30, 2009 at 05:24 PM

Payroll UK Statutory Paternity Pay problem.


Hello friends,

Currently, our organisation has implemented Payroll GB solution.

The employees are paid every 4 weeks and makes statutory payments like SSP, SMP and SPP.

There is an issue with the Statutory Paternity pay (SPP) and because of this, wrong payments are being made to the employees.

The HMRC regulation states that

If your employee is entitled to paternity leave they may also be entitled to SPP for the period of their leave. They'll be entitled to SPP if they have average earnings at least equal to the NICs Lower Earnings Limit (LEL) - £95 a week or £412 a month for 2009-10.

If your employee is entitled to SPP, you must pay them the lower of:

£123.06 - from 6 April 2009

90 per cent of their average weekly earnings

Which means that the employee is paid say 123.06 x 2 if the employee takes 2 weeks of Parental leave.

We currently need to change the rules and schemas so that the folllowing rules and payments are being deployed for the employees.

Statutory Paternity Leave is paid at the current Statutory Maternity Rate of £123.06 per week or 90% of average weekly earnings if a colleagueu2019s weekly salary is lower than this rate.

The employee will be entitled to receive their basic pay for the first week of their paternity leave, followed by Statutory Paternity Pay for the second week.

This means employee gets 1st week = Basic pay ; and second week = 123.06 or 90% of avg weekly earnings (lesser of the 2).

I have been trying to find out the actual changes that I will have to make and to configure to get the desired results, but currently having problems with this issue.

Can anyone help in this regard?

Thanks and Best Regards.