When a worker has a baby in the UK they are entitled to Statutory Maternity Pay (SMP). Whether they are entitled to the SMP, the amount they are due to receive and the period that they are due to receive it is attached to some entitlement criteria set by the government. In MDA you can now create SMP for Contractor and CAE workers with our new automated calculation!
To use the automated calculator, the worker will require at least two with invoice payrolls and have been employed approximately 40 weeks before the due date.
The calculation will also handle the pension entitlement. When getting SMP the worker is still entitled to receive the same Employers pension contributions. The system will calculate this based on the worker’s average weekly earnings and adds an override to their contribution on their record. The same applies to Employee’s Contributions where the scheme is a Salary Sacrifice scheme.
Please note:
- SMP cannot overlap with an SSP entry
- You cannot back date or create across multiple tax years
- You can only use the calculator to create an entry in the current tax year
Step by Step Guide:
Please go to Payroll > Preparation > Statutory Payments and click create.
Enter the workers name and select Statutory Maternity Pay (auto calculation).
Enter baby’s due date and the maternity leave start and end date. Then click calculate.
The SMP calculation will be split into two calculations (first 6 weeks and the remaining weeks).
SMP Calculation tab:
With Invoice Payrolls within the Qualifying Period tab:
This will give you a breakdown of the calculation based on the workers previous earnings.
Pension Calculation tab:
Employer pension contribution will be calculated based on the workers previous earnings. You also have the option to override the pension contribution by toggling on ‘override employer contribution’ then enter a new amount.
Click save, you will then get a breakdown of the SMP entries and pay dates.
Click Submit and follow the payroll without invoice flow to process the payroll.