STATUTORY PAYMENT CALCULATIONS: SSP, SMP, SPP ETC
From time to time your employees may take absences from work due to sickness, maternity, paternity or adoption. These absences are often covered by statutory payments. As an employer it is your job to determine if these absences quality for the appropriate statutory payment that will cover their absence, then make the payment to them. HMRC allows you to reclaim some of these statutory payments from them. This is done by reducing the PAYE taxes and the national insurance liabilities that you pay to HMRC. If your PAYE liabilities are too low to cover these statutory payments then you can request for advance funding from HMRC to recover these payments. This often comes in handy to cover maternity leaves. Statutory payment calculations are important for the functioning of any business. There are a few different types of statutory payment calculations. These include:
- Statutory Sick Pay (SSP) SSP is paid to an employee who has been sick for four or more consecutive working days and has earned an appropriate amount of wages in the eight weeks prior to their sickness. SSP covers a maximum of 28 weeks of sick leave.
- Statutory Maternity Pay (SMP) Maternity pay is paid to mothers at the rate of 90% of their earnings for the first six weeks of their leave. After this period SMP can be paid for up to 33 weeks and if their earnings are lower the amount remains at 90% of their earnings.
- Statutory Adoption Pay (SAP) Adoption pay is paid to adopters at the rate of 90% of their earnings for the first six weeks of their leave. After this period SAP can be paid for up to 33 weeks and if their earnings are lower the amount remains at 90% of their earnings.
- Statutory Paternity Pay (SPP) SPP can be claimed by a partner for one or two consecutive weeks. In order to qualify for this their earnings and the length of their employment must meet the given criteria.