Introduction

Shared Parental Pay and Absence allows eligible parents to split up to 50 weeks of leave and 37 weeks of pay after childbirth or adoption. From a payroll perspective, it’s important to ensure both parents meet the criteria and that maternity or adoption leave is officially ended before processing ShPP.

Contents

• How to calculate Statutory Shared Parental Pay
• How to process ShPP on the pay run
• Adjusting Salary
• Reporting ShPP partners details on the FPS

How to calculate Statutory Shared Parental Pay

Statutory Shared Parental Pay isn’t currently calculated in the system. You will need to work out the amounts and timing, then process them manually through payroll.

Please see the below HMRC links that will help you to confirm the employee is eligible and calculate the ShPP:

• Check if you can get Shared Parental Leave and Pay
• Plan your Shared Parental Leave and Pay - this is a planning tool which shows when and how the employee can take Shared Parental Leave and Pay, what pay they are entitled to and when they need to give notice. 

How to process ShPP on the pay run

Refer to the above HMRC’s guidance and calculator to determine the correct ShPP payment amount for the employee in each pay run. Once you have the amounts ready and you started the pay run please locate the employee in the Enter Payments tab, then click + Add payment.  

Select the Shared Parental Leave in the Payment type field and add the calculated amount. You can overwrite the Description to show differently on the employee's payslip.

The Advanced section allows you to add a Cost code and/ or select to Repeat every pay run - this can be useful if you know the employee will be paid the same amount in the following pay runs. Click Save.

Adjusting Salary

If the employee is hourly paid you just need to ensure all the other payments and deductions are correct. However, if the employee is salaried, you have a few options how to proceed:

• End the salary in the Employee's record, Pay tab click on End salary and enter the last day the salary needs to be paid for.

• Edit and change the amount or Delete the Salary payment in the Enter Payments tab of the pay run.

• Add a negative salary payment in the pay run to offset the salary which is automatically calculated. Click on +Add Payment on the employees record in the Enter Payments tab of the pay run, select Salary in Payment type. You can overwrite the Description to describe this payment on the employee's payslip. Enter the negative amount which you need to deduct from the employee's salary. You can also add a Cost code and/ or select to Repeat every pay run - this can be useful if you know the employee's salary will need to be offset in the following pay runs.

Reporting ShPP partners details on the FPS

In order to report the partners details on the FPS please raise a ticket following these steps: How to raise a Ciphr Payroll Cloud (Shape) ticket in the Customer Care Portal Please include the company URL link, the employee full name and the required partners details.