Payroll ASPP

We recently received feedback saying that the subject of Payroll is a hot topic during March and April whilst we introduce the new features and legislation changes along with preparing for the year end but then it tends to get neglected for the other ten months of the year. We therefore set Joe Jardine the task of putting this right and with a ten month old at home unsurprisingly he opted to talk about the changes in paternity entitlement.

As of 3rd April 2011 any of your employees can apply for Additional Statutory Paternity Pay (ASPP) if their partner has a baby or adopts a child. If the mother intends to return to work the Father can apply for ASPP if they meet the qualifying conditions. Access Payroll can help the payroll department to decide if ASPP is due and make the appropriate calculations to save you time and effort. When you receive an SC7, SC8 or SC9 parental pay form from an employee you will need to check that it has been signed by both employees, that it has been presented at least 8 weeks prior to the ASPP start date, confirm that the ASPP date is not before the Mother is returning to work and that the Mother or adopter has taken at least 2 weeks off after the child was born. If any of these criteria are not met you will need to complete an ASPP1 form and state the reason why.

Access Payroll will continue to pay the employee the statutory amount until you reach the ASPP expiry date (or for any week where you are paying the same employee SSP). If at the end of this period the employee wishes to take any unpaid Additional Paternity leave then you will need to adjust the record manually accordingly. The employee is also entitled to the 10 KIT days (Keeping In Touch) where they can come into work but don’t lose their statutory payment.

The above is perhaps best described with an example scenario. Mrs Bloggs started her maternity leave on the 1st April 2011 and receives her maternity allowance. A fortnight later she has her baby. 20 weeks after the birth of her child she returns to work (week 22 of her maternity pay period). Mr and Mrs Bloggs complete the SC7 form and meet the qualifying conditions. Mr Bloggs takes ASPP from the date that Mrs Bloggs returned to work and receives statutory pay for the duration of her maternity period, in this example, 17 weeks. After week 39 Mr Bloggs can optionally return to work or stay at home until the child is one year old. If Mr Bloggs stays at home this will be unpaid time.

You can read more about the rules for ASPP on the HMRC website:- http://www.hmrc.gov.uk/paye/employees/statutory-pay/aspp-overview.htm.

For software assistance you will find some useful information in the Access Payroll help system or alternatively simply telephone our eagerly awaiting helpdesk team on 0333 666 3330.