Your employee may be entitled to Ordinary Statutory Paternity Pay if their spouse or partner gives birth to a child. This replaces their normal earnings and helps them take time off to care for the child.
As their employer, whether you have to pay them OSPP depends on how long they have worked for you, how much they earn and the date of the baby's birth. They will also have to provide you with documentary evidence at least 28 days before they wish their OSPP payments to start.
Payments of OSPP count as earnings. You must deduct tax and National Insurance Contributions (NICs) from them in the usual way.
You'll normally be able to recover some or all of the OSPP you pay.
OSPP following the birth of a child is available to an employee who is:
and who is taking time off to support the mother or care for the baby.
To qualify for OSPP, the employee must have:
The calculation of the average weekly earnings is very important because it not only determines if the employee qualifies for OSPP but also how much they qualify for. To qualify for OSPP, an employee must have average weekly earnings of at least the NIC LEL amount, £112.00 for 2015/16, in the relevant period up to the Qualifying Week.
From 5th April 2015, OSPP is paid for one or two consecutive whole weeks at the lower of £139.58 per week or 90% of the employee's average weekly earnings.
Recovery of OSPP
All employers are entitled to recover 92% of OSPP they pay, however if the employer qualifies for Small Employers Relief, where the total NIC in the qualifying tax year was under £45,000, they can recover 100% of OSPP paid plus an additional 3% in compensation for the employer’s share of NIC due on these payments.
To access this utility, simply click 'Payroll' and select the employee’s name on the left:
Overriding the 'Average Weekly Earnings' Calculation
If existing payment records have not been recorded in BrightPay, the automatic calculation performed by the program after completing the above may be inaccurate. In the event of this occurring, the user may override the AWE by doing the following:
Should an employee wish to extend or reduce the length of their ordinary paternity leave, the length of leave already entered for the employee can be edited as follows:
No OSPP is payable for any week in which an employee works during their ordinary paternity leave period.
To record Return To Work Days in BrightPay:
1. Under Employees, select the employee from the listing and click their Calendar tab.
2. On the Calendar, select the date of the Return To Work day and click 'Return To Work Day' on the right hand side
3. Repeat if further Return To Work Days are taken
If a Return To Work day is recorded on the employee's calendar, BrightPay will notify you in the relevant pay period that the employee is not entitled to any OSPP having returned to work for one or more days.
BrightPay uses the full statutory week method when calculating & applying OSPP (Birth).
Paternity Leave begins on a Wednesday. Therefore the last day of the OSPP week will be a Tuesday.
OSPP will thus begin in the pay period in which the first Tuesday of the paternity leave falls.
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