Ordinary Statutory Paternity Pay
The Ordinary Statutory Paternity Pay (OSPP) rules and rates are updated as part of your Payroll Upgrade if you select to load the SMP parameter table when prompted. You can also apply the new rates and default rules manually using the OSPP Parameter Entry option:
Click on the following links for further information:
Summary of Changes for 2011-12
Additional Statutory Paternity Pay Additional Statutory Paternity Pay (ASPP) was introduced for qualifying employees for babies due to be born on or after 3 April 2011 and for children matched for adoption on or after 3 April 2011 when
Couples in Northern Ireland need to be married in order to jointly adopt a child. ASPP is an additional payment given to eligible fathers, partners, civil partners of mothers and adopters where there is entitlement to Statutory Maternity Pay (SMP), Maternity Allowance (MA) or Statutory Adoption Pay (SAP). This is to take time off work to care for their child. The earliest start date for ASPP is 20 weeks after the childs birth or the date the child was placed with an adopter and there must be at least two weeks SMP, MA or SAP still remaining. The mother or adopter must have returned to work before payment starts. ASPP is payable for the remainder of the SMP, MA or SAP pay period, but payment cannot continue beyond the end of the pay period. Ordinary Statutory Paternity Pay (OSPP) rates have been increased from 3 April 2011. The weekly rate of OSPP has been increased to the lower of £128.73 or 90% of the employees average weekly earnings (AWE). To be paid OSPP an employees AWE must be at least equivalent to the LEL which applies at the end of the qualifying week (QW):
Your OSPP Parameters should be as follows when you have successfully advanced your payroll(s) to the 2011-12 tax year. You are advised to check these figures against those published by HM Revenue & Customs:
If a salary sacrifice arrangement is in place during the set period for an employee who is on paternity leave, or is about to start paternity leave, you must ensure that their OSPP is calculated on their gross earnings, i.e. earnings that are subject to Class 1 National Insurance contributions (NICs). Under that arrangement their average weekly earnings (AWE) are calculated using the amount of earnings actually paid to them during the set period, therefore their OSPP will be based on their reduced salary. You should note also that where a salary sacrifice arrangement lowers an employees AWE to below the Lower Earnings Limit for National Insurance they are not entitled to OSPP. Change in the additional payment made to small
employers Employers who do not qualify for the small employers' rate can recover 92 per cent of the SMP, OSPP, ASPP and SAP paid to their employees. Summary of Recent Changes to SPP Recent changes to SPP can be summarised as follows:
|