Calculating Employment Payments Bethan Osborne & Lis Moore Employment Advisors

What are Statutory Payments Statutory Sick Pay (SSP) Statutory Parental Pay (SMP/SPP/SAP) Statutory Redundancy Pay (SRP) Holiday Pay

SSP - eligibility Must be an employee Must have earned over the Lower Earnings limit ( £111 per week) Must be sick for 4 days or more in a row (PIW) and notified the employer Not paid for the first 3 days of illness (WD) May be linked to another PIW Maximum of 28 weeks

SSP £87.75 per week ( ) No need to operate SSP if Occupational Scheme (OSP) pays the same or better Green Book terms more than SSP Can run SSP & OSP concurrently If SSP paid > 13% of total NIC for month can reclaim until 6 th April 2014 If PAYE & NIC less than SSP – claim HMRC funding

SMP - eligibility Must be an employee Must have earned over the Lower Earnings limit ( £111 per week) 26 weeks employment by Qualifying Week (QW) Give 28 days notice Provide medical evidence (MATB1)

SMP QW = 15 th week before the due date 25 weeks pregnant LOS 26 weeks by QW therefore needs to have worked for you for a week before getting pregnant! If not eligible can claim Maternity Allowance

SMP 39 weeks paid vs 52 weeks leave Other benefits continue to accrue – holidays, SLCC membership, contractual increments 6 weeks at 90% of pay at QW 33 weeks at £ ( ) 10 Keep In Touch (KIT) days

SMP & Green Book Green Book more generous <1 year of service = SMP only >1 year of service and returning to work for at least 3 months = 6 weeks at 90% followed by 12 weeks at 50% then SMP for 15 weeks

SAP Must be an employee Must have earned over the Lower Earnings limit ( £111 per week) 26 weeks employment on Matching Date (MD) 28 days notice for pay & 7 days notice to take leave Provide evidence of matching and official notification from local authority

SAP 39 weeks paid leave vs 52 weeks adoption leave £ per week or 90% of pay if lower Available to individuals or one of a couple adopting a child Other member of couple can claim SPP Recovery and funding as for SMP No Green Book enhancements

SPP 2 types Ordinary & Additional Applies to births and adoptions Up to 2 weeks OSPP – must be consecutive In 8 weeks following birth or from day of placing Up to 20 weeks ASPP from 20 weeks after birth or placement

SPP - eligibility Must be an employee Must have earned over the Lower Earnings Limit ( £111 per week) 26 weeks employment at QW or MD Still employed when ASPP starts At least 2 weeks SMP or SAP remaining Partner has returned to work

SPP £ per week Recovery and funding rules the same as SMP & SAP Evidence needed – signed declarations by both parents for ASPP HMRC pro-formas Green Book – 5 days Maternity Support Leave

Redundancy Must be an employee Must meet the statutory definition of redundancy Min 2 years completed service Under 22 half a week’s pay per year a week’s pay per year Over 41 one and a half week’s pay per year

Redundancy Tax free up to £30,000 Capped at £450 per week Notice pay per contract or statutory notice Continuous service from another authority No recovery or funding from HMRC!

Holidays Statutory entitlement Min 5.6 weeks paid leave per year or 28 days Can include bank holidays Pro – rata for part timers Green Book 21 days plus bank holidays plus 2 extra statutory days increasing by 5 after 5 years service.

Holidays Continue to accrue during SMP/SPP/SAP Continue to accrue during sick leave Carry forward of entitlement above 4 weeks permitted but should be taken as soon as practical Usual carry forward not more than 5 days Untaken leave should be paid on termination of employment

Part Timer Holidays Convert to hours e.g employee works 10 hours per week and gets statutory minimum leave so multiply hours by 5.6 = 56 hours paid leave including bank holidays. Green Book more complicated calculation work out full time annual leave in hours (236.8) and then divide by 37 and multiply by hours of work

Part Timer Holidays For each day of leave deduct normal working hours If a bank holiday or extra statutory day falls on a working day deduct normal hours Balance is the hours they can book

How to pro-rata pay? Hourly Pay - full time equivalent divided by 52 divided by 37 Specified in Green Book Then multiply by number of hours e.g £21,734(SCP25) /52/37 = £11.30 per hour times contractual hours 20 per week = £ per week Monthly value - multiply by 52 divide by 12

Test Your Knowledge In pairs do the exercise on the sheet Use a calculator or show your workings

More Information HMRC guidance on data stick SLCC Advice Notes CALC/SLCC Advisory Service Annual Leave Calculator on website gov.uk website HMRC website (includes calculators)

Any Questions?