How to pay SMP, SPP, SAP, and ShPP

Article ID: 2025217              Last updated: 14 April 2016

 

AccountEdge Plus allows you to make SMP, SPP, SAP, and ShPP payments to your employees and automatically claim recovery on these payments via the P32 report or Pay Liabilities window.

Note!  AccountEdge will not automatically calculate SMP, SPP, SAP, or ShPP payment amounts, these will need to be calculated outside AccountEdge.  However, AccountEdge will calculate the appropriate recovery amounts based on the amounts paid to employees.

  • HMRC's maternity and paternity calculator can be found here.

Step 1 - Check your Small Employer's Relief (SER) status

AccountEdge will automatically reclaim either 92% or 103% of employee Statutiory Materinty, Paternity, Adoption, and Shared Parental Pay based on your company's Small Employer's Relief status.

If you are unsure of your company's status, click here for more information.

To set your Smaller Employer Relief status in AccountEdge, go to Setup> Payroll Information:

Payroll Information

 

Step 2 - Give the employee an SMP, SPP, SAP, or ShPP wage category

In order to pay an employee SMP, SPP, SAP, or ShPP, they must be given the appropriate wage category.

Go to the relevant employee card and open the Payroll Details> Wages window:

Wage Categories

Select the appropriate SMP, SPP, SAP, or ShPP wage category.

 

Step 3 - Decide how you wish to pay SMP, SPP, SAP, or ShPP

You have a choice as to whether you wish to set a default recurring pay amount for SMP, SPP, SAP, or ShPP for the employee, or to edit the employee's paycheque each period during Process Payroll.

Note!  The two options are not mutually exclusive and you can change from method to the other whenever required.

Option 1 - Use Recurring Pay

Recurring pay allows you set a 'default' wage amount for the employee's wage category.  For example, setting an SMP recurring value of £1800 per month will set the employee's paycheque to paying £1800 SMP each month by default.

Note!  This value will continue as the default wage amount until it is changed in the employee's card.  AccountEdge will not automatically keep track of how many weeks / months an employee has been paid at a given rate.  After the first six weeks of payment, and at the end of the parental pay, the recurring pay amounts should be re-checked,

Option 2 - Enter the payment amount when processing pays

If recurring pay is not preferred, you can instead enter the SMP, SPP, SAP, or ShPP amount at the time of processing the employee's pay.

 

[Option 1]  Set a Recurring Pay value for SMP, SPP, SAP, or ShPP 

Go to the Employee card> Payroll Details> Recurring Pay window:

Recurring Pay

Edit and enter the appropriate recurring (default) amounts of Base Salary/Hourly, and SMP, SPP, SAP, or ShPP pay.

Note!  Depending on your company policy, you may wish to set Base Salary/Hourly pay to zero, paying the employee the selected parental category only.

Click OK when complete.

 

[Option 2]  Enter the payment amount when processing pays

To enter the SMP, SPP, SAP, or ShPP amount at the time of processing pays, click the employee's zoom '»' button in the Select & Edit Employee's Pay window, example below.

Select Employee

 The Pay Employee window will appears, example below:

Edit Paycheque

Edit and enter the appropriate amounts of Base Salary/Hourly, and SMP, SPP, SAP, or ShPP pay.

Note!  Depending on your company policy, you may wish to set Base Salary/Hourly pay to zero, paying the employee the selected parental category only.

The selected parental pay's Recovery amount will be automatically calculated.

 

Note!  The SMP, SPP, SAP, and ShPP recovery amounts will appear on your P32 report and the Pay Liabilities window, reducing your liability payment to HMRC for the period.

 

Step 4 - Submit an Employer Payment Summary 

When recording your the pays, you will receive a pop-up message reminding you that once all pays have been completed for the month, you must submit an Employer Payment Summary (EPS) to HMRC to inform them of your reduced liability payment for the period.

To submit an EPS, go to the Payroll menu and select Employer Payment Summary.  The Summary Information window will appear, similar to below:

Employer Payment Summary

Ensure that Submit Recovery Amounts to Date is selected.

The appropriate SMP, SPP, SAP, and ShPP recovery amounts will automatically appear.

Note!  Employment Payment Summary recovery amounts are submitted as YEAR TO DATE values; these values will therefore increase through the year, depending on the categories recovered.

 

 

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