Calculating Employment
Payments
Bethan Osborne & Lis Moore
Employment Advisors
What are Statutory Payments
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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 (2014-15 £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 (2014-15)
• 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 6th 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 (2014-15 £111 per week)
• 26 weeks employment by Qualifying Week
(QW)
• Give 28 days notice
• Provide medical evidence (MATB1)
SMP
• QW = 15th 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 £138.18 (2014-15)
• 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 (2014-15 £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
• £138.18 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 (2014-15 £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
• £138.18 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
• 22-41 a week’s pay per year
• Over 41 one and a half week’s pay per
year
Redundancy
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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 = £225.93 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
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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?