The Enter maternity details option is used to record firstly the Expected Week of Childbirth (EWC) and then to start the Maternity Pay Period (MPP) and to generate Statutory Maternity Pay (SMP) payments to the employee and claim back amounts from the government based on a set of government SMP rules and SMP parameters.
The system caters for the Small Employer Relief Scheme by the use of SMP parameters.
To access Enter maternity details
The Payroll Password form is displayed.
Enter your payroll password.
The PAYROLL menu is displayed.
Select the Enter maternity details option.
The Payroll period information form is displayed. This should be checked to ensure you are in the correct payroll type and period.
Note: If the payroll has been confirmed for the current period the message Period payroll has been confirmed is displayed at which point you should select the Exit option to return you to the payroll menu since further updating of the payroll is not possible without the payroll being reset.
Select the OK option.
The Enter maternity details form is displayed.
The Enter maternity details form is displayed when you select the Enter maternity details option from the PAYROLL menu and select OK to the payroll period information form.
What do you want to do or be advised about?
Employee number: The individual number allocated to each employee consisting of up to six digits. The first available female employee number within the employee record sequence will either be shown if the payroll type parameter called Employee default is ticked otherwise will default to number zero. The employee number chosen may however be changed by the user by entering the employee number or by using the search function described in the tip below.
Tip :
Click the Ellipsis button ![[...]](Ellipsis.gif){kind=small}
to search for an employee number from the employee records file by either a surname search or a word search. The search will only list those female employees that have been created for your current payroll company and payroll type that do not have their left flag set to Y or P indicating a left employee in the current and previous tax year respectively.
If the payroll type parameter called Block edit of own record is ticked it is not possible to select your own record as identified by the Employee record containing your user id in the User ID field. If you enter your own payroll record number the error message You are not permitted to edit your own payroll record is shown.
The system checks the employee's records and can give one of the following warnings:
Maternity pay entry only possible for female employees.
Employee has left (DD/MM/YYYY).
Error reading payroll record (Record locked).
This employee has an invalid National Insurance code.
Expected Week of Childbirth (EWC): Selecting the Enter maternity details option for the first time for an employee will prompt for an EWC date. The date will be defaulted to the SUNDAY X weeks in the future from the current week where X is the SMP parameter Qualifying weeks before EWC = 15 weeks for 2005/2006. If the date on the maternity certificate is different the EWC can be changed and the system will then automatically adjust the date to be the Sunday of that week.
Qualifying week (QW): After tabbing out of the Expected Week of Childbirth (EWC) field the qualifying week will be adjusted to the Sunday X weeks before the Expected Week of Childbirth (EWC) where X is the SMP parameter Qualifying weeks before EWC = 15 weeks for 2005/2006.
Note: If the employee has not been with the company for at least the number of weeks given by the SMP parameter Weeks service to qualify = 26 weeks for 2005-2006 at the qualifying week, she does not qualify for SMP. The following message will be seen:- WARNING: Employee started after DD/MM/YYYY.
If this is the first time you are entering the Enter maternity detail option for an employee you should now select either to Save the data entered or Cancel to not save the data and return to the main payroll menu.
Maternity leave start: This is only a memorandum date to record the start of the maternity leave, entering this date will not in itself start the payment of maternity pay.
Maternity leave end: This is only a memorandum date to record the end of the maternity leave. The maternity leave start and end dates will be reset when there are no more SMP weeks left and you select into a new payroll period whose start date is beyond the maternity leave end date.
Maternity Pay Period (MPP) start date: When using the Enter maternity details option having earlier set the Expected Week of Childbirth date the Maternity Pay Period date is shown as X weeks before the Expected Week of Childbirth date where X is the SMP parameter Earliest before EWC = 11 weeks for 2005/2006.
There are two parameters which govern when the payment of SMP can be commenced. The system will give warnings if SMP is being started too early and if started late.
Average weekly pay: Once a default Maternity Pay Period (MPP) start date is shown a Start maternity pay period dialog box is displayed. The system then prompts for the Pay periods since qualifying week. This prompt is necessary because the average pay must be calculated at the qualifying date which is defined as the Sunday X weeks before the Expected Week of Childbirth (EWC) where X is the SMP parameter Qualifying weeks before EWC = 15 weeks for 2005/2006. Rather than let the system decide from which week the average is to be calculated it is simply asking how many pay periods to skip back down the S.S.P./S.M.P. gross pay for National Insurance earnings history before it takes an average of the previous 8 weeks or 2 months pay.
Enter the number of Pay periods since the qualifying week and select OK.
The following are the validity checks made on the payment:-
If the average pay is not equal to or greater than the lower earnings limit in the NI table for this employee then she is not eligible for SMP: WARNING: Average earnings are below NI limit, no SMP due.
If the Maternity Pay Period (MPP) start date is before the SMP parameter Earliest before EWC = 11 weeks for 2005/2006 a warning is given:- WARNING: MPP should not be started until DD/MM/YYYY.
If the Maternity Pay Period (MPP) start date is after the SMP parameter Latest after EWC = 0 weeks for 2005/2006 there is no loss of SMP payments as happened in the past and consequently no warning.
The average weekly pay can be amended if your payroll priority is equal to or greater than that set in the system parameter called Priority to amend SMP average pay unless this parameter has been set to N.
Total weeks left: The system defaults an original number of weeks as the total weeks left using the SMP parameter called Max weeks SMP liability = 26 for 2005/2006.
Weeks at higher rate: The system defaults an original number of weeks as the weeks at higher rate using the SMP parameter called Weeks at higher rate = 6 for 2005/2006.
SMP weeks this period: The system defaults in the maximum number of full weeks ending Saturday that may be paid in the current payroll period using the start of the Maternity Pay Period (MPP) date and the payroll period dates.
These fields can be manually altered as required however you must take into account the system messages and warnings.
SMP start days: The number of SMP days at the start of the pay period to complete a week of SMP previously started in the prior payroll period. This field is only accessible if the payroll type parameter on the SMP Logging TAB called Divide SMP payments is ticked. If used the days represented by the days are shown to the right too.
SMP end days: The number of SMP days at the end of the pay period to complete the end of the payroll period. This field is only accessible if the payroll type parameter on the SMP Logging TAB called Divide SMP payments is ticked. If used the days represented by the days are shown to the right too.
SMP total KIT days: This is a memorandum field only to record the total number of SMP Keeping In Touch - KIT days for the current MPP. More detailed information may be recorded if necessary in the Human Resources calendar. Provided the number of SMP KIT days remains below the limit - 10 for 2007/2008 - there is no loss of SMP paid to the employee should she attend work. You will be advised of the limit if attempting to enter a number of KIT days above the limit.
Total SMP this period: The total SMP this period is the Weeks at higher rate multiplied by the % of average pay stored as a SMP parameter called Higher rate % = 90% for 2005/2006 plus the number of weeks paid remaining for payment this pay period multiplied by the lower of the 90% of the SMP average weekly amount and the standard SMP rate stored as a SMP parameter called Standard weekly amount = 106 for 2005/2006. Weeks at higher rate are always paid first and this number of weeks is defined taking into account the fields called Weeks at higher rate and SMP weeks this period.
SMP standard this period: The SMP standard this period field shows the amount of SMP to be paid this period calculated from the standard SMP rate stored as a SMP parameter called Standard weekly amount = 106 for 2005/2006 and is included in the Total SMP this period value. Under the latest rules introduced on the 6th April 2003 this value will be restricted to 90% of the SMP average weekly pay figure if this is a lower value. This was previously used with Profit Related Pay (PRP) schemes.
Calculated period pay: Due to the flexible nature of the SMP legislation the system can be overridden and SMP paid under any circumstances. When the cursor has passed through all of the fields and arrived at the Total SMP this period field, the system shows the calculation of the first payment for the pay period of the employee in the field 'Calculated period pay', this is also defaulted into the Total SMP this period field and allows amendment. The display of this field is under review as it does not appear to serve any purpose.
Total SMP due: This contains the amount of SMP which has still to be paid including this period's amount. If an attempt is made to pay more SMP than is currently due then a warning is given:- WARNING: SMP this period exceeds total SMP due.
If you are entering the Maternity Pay Period (MPP) start date and other details on this occasion you should now select either to Save the data entered or Cancel to not save the data and return to the main payroll menu. See below the summary for the other push buttons.
PUSH BUTTONS:
Exit: Returns you to the PR MAIN MENU.
Save: Saves any changes that you have made to the maternity details form and returns you to the PR MAIN MENU. Unless your system is set up for automatic updating of the rates table you should now review the payment rates being paid to the employee during the current payroll period.
If the payroll type parameter called Posting warning before confirm is ticked the nominal ledger postings to be generated as a result of using the option are verified and any posting validation errors are brought to your attention. Press Continue to close the form and correct the employee or payroll record as soon as possible. Posting errors will normally be due to the Cost centre or Cost centre split fields on the employee record forming an invalid account combination with the NL Grade field on the Static 1 TAB of the payroll record.
Cancel: Cancels any changes that you have made to the maternity details form and returns you to the PR MAIN MENU.
Help: Displays help on the current application in your default company browser.
Next: Displays the details of the next employee number.
Previous: Displays the details of the previous employee number.
Setting the Expected Week of Childbirth (EWC) date
To set the Expected Week of Childbirth (EWC) date:-
Enter the employee number within the Enter maternity details option.
Enter the Expected Week of Childbirth (EWC) date.
Click the Save button.
Correcting the Expected Week of Childbirth (EWC) date
To correct the Expected Week of Childbirth (EWC) date:-
Use the main payroll menu option called Add/modify payroll record and amend the SMP data on the Static 3 TAB.
Click the Save button.
Starting the Maternity Pay Period (MPP)
To start the Maternity Pay Period (MPP):-
Enter the employee number within the Enter maternity details option.
Complete the remainder of the Enter maternity details form starting with declaring the number of Pay periods since the qualifying week.
Click the Save button.
Amending the Maternity Pay Period (MPP)
The Maternity Pay Period (MPP) details may be changed at any time provided the payroll period is unconfirmed and the employee has not left and is not being amended by another user. Simply use the Enter maternity details form.
Enter the employee number within the Enter maternity details option.
Complete the remainder of the Enter maternity details form starting with declaring the number of Pay periods since the qualifying week.
Click the Save button.
Calculate period pay processes
SMP payments are added to gross for Tax, NI and Pension.
The calculation of SMP period pay as described above within the enter maternity details form for starting or amending MPP details or carrying forward the period results in the payroll record Static 3 and Totals TAB SMP fields being amended.
The full value of possible recovery is stored in the Total TAB field called Statutory Maternity Pay Gross.
The Statutory Maternity Pay Claimed period value is calculated by the SMP parameter called SMP recovery rate multiplied by the Statutory Maternity Pay Gross.
The Statutory Maternity Pay National Insurance Compensation period value is calculated by the SMP parameter called Compensation % multiplied by the Statutory Maternity Pay Gross.
The SMP parameters called SMP recovery rate and Compensation % are set to different values depending on if the company is in the Small Employers Relief scheme for SMP recovery.
If your system has several payroll companies with a mixture of companies being in and not in the Small Employer Relief scheme it is necessary to have company specific SMP parameter files instead of a global file. Contact the software support department if this is required after the initial system set up.
The Statutory Maternity Pay (S.M.P.) Paid period value is determined by comparison with the Gross Pay figures calculated from the Rates and Additions/deductions which contain SMP as indicated by the SMP flag. If the gross figure is less than the SMP Gross figure the result is held in the Statutory Maternity Pay (S.M.P.) Paid period value and must be paid to the employee.
SMP and payslips
For the printing of SMP on payslips a payroll type parameter on the SMP TAB called Show SMP detail on payslip is used.
If this check box is left unset only the 'SMP paid' value is printed as 'SMP'
If this check box is set to a tick then the full value of the 'SMP gross' is printed as:
'SMP this period' - Value of SMP gross
and underneath
'SMP already incl' - Difference between SMP gross and paid if not zero
Reporting SMP
It is recommended that the Period SMP details report be added as a mandatory end of period option report. This report may otherwise be run from the Reports & enquiries, Period reports menu.
Select new period
When the pay period is carried forward, even at year end, the following checks and calculations are made after the Total SMP weeks this period is deducted from the total weeks left and the weeks at higher rate, if not already zero, to obtain the new value.
If the result is zero or negative then the SMP is ended and the Expected Week of Childbirth (EWC) date field is blanked.
If positive then the new period pay is calculated as before.
Human Resources calendar update
The payroll system may be set up by users if the optional Human Resources (HR) module is installed so that the calendar facility within the HR system is automatically updated with calendar data once the Enter maternity details option is used and the Maternity Pay Period (MPP) is started. The HR calendar is also updated when the Select new period option is used to advance into the next tax period. Typically code M is used for Maternity pay.
To set up the HR calendar update a priority 8 user has to use the System maintenance menu option called Payroll type parameters to set up the SMP calendar code on the SMP TAB.
Automated rates table update
The payroll system may be set up in an advanced mode so that once Enter maternity details has been used the rates table itself is automatically adjusted to reflect the period of absence and the optional payment based on service entitlement of company maternity pay. This process is highly parametised and needs to be carefully thought through and understood before set up.
Consultancy is recommended for the implementation of this process but please note that due to varied nature of the process it cannot be guaranteed that the system will handle the exact process required which will only be determined during a consultancy review process.
To set up the Automated rates table update a priority 8 user has to use the System maintenance menu option called Payroll type parameters to set up the SMP logging rules on the SMP TAB.
What is the next process?
Your next step in the payroll process is to use the Enter paternity details option to input the paternity details.
The overall process of running a payroll period may be summarised as follows:-
Make amendments to existing employees and create new employee and payroll records and if used, Human Resource records for joiners using either the main employee records or payroll menu option called Full employee edit or the Employee records main menu option called Add/modify employee details, the main payroll menu option called Add/modify payroll record and the main human resources menu option called Human resource records.
Input pay details option to input the main payroll details.
Enter sickness details option to input the sickness details if this option is to be used on your system.
Enter maternity details option to input the maternity details.
Enter paternity details option to input the paternity details.
Enter adoption details option to input the adoption details.
Enter court orders/CSL option to input the court orders and student loan collections.
Enter leaving dates option to maintain leavers and to re-instate payroll records to perform final irregular payments to left employees.
Calculate period payroll option to calculate the payroll.
Reports & enquiries option may be used at this or at any other entry stage to check the data that has been entered onto the system.
Print payslips option to first preview the payslips on screen or to print them on plain paper for checking and then to print the payslips followed by selecting the Update option.
Print cheques option to first preview and then to print cheques if used as a payment method followed by selecting the Update option.
Print bank giros option to first preview and then to print bank giros if used as a payment method followed by selecting the Update option.
Confirm/reset period payroll option to freeze the input of the payroll and to generate nominal and optional BACS postings held at this stage within the payroll module.
BACS listing option to produce a BACS listing report if BACS is used.
Transfer BACS buffer to BACS option to copy the payment data to the BACS submission module on the main accounting system or the payroll system ready for transmission to BACS if BACS is used.
Confirm/reset period payroll option to possibly reset the payroll and to correct the original generated payroll. This is typically followed by selective use of all the steps prior to the first use of the Confirm/reset period payroll option.
Execute EOP options option to produce the reports set up for mandatory running within the payroll period - this is best left until you are satisfied with the accuracy of the payroll processed.
Reports & enquiries option to produce any other optional reports and at payroll year end mandatory reporting.
Select new period option after a nightly system backup to select into the next payroll period or payroll year including the optional copying of the nominal ledger postings to the main accounting system and any other BACS generated postings to the BACS submission module on either the main accounting system or the payroll system ready for transmission to BACS.
