8 | YOUR CIPP
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The CIPP’s Advisory Service team provides answers
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Processes for statutory neonatal care leave and pay Q: An employee is taking statutory neonatal care leave during a period of maternity leave. Which form needs to be completed in relation to this and how do we process it through the payroll? A: Statutory maternity leave and pay will take precedence, as maternity leave regulations ensure the employee goes onto maternity leave the day following the child’s birth. Statutory neonatal care leave can be taken at the end of the maternity leave period. The CIPP’s policy team recently provided an update on statutory neonatal care leave and pay, which can be viewed here: https://ow.ly/3Aov50XN6vt. This provides a more comprehensive overview of how the policy will work in practice. The employer must keep records of: l the employee’s written declaration, stating their caring responsibilities for the baby and their relationship with them l the name of the baby l the date the baby went into neonatal care
l the date the baby left neonatal care (this can be provided later if the baby is still in neonatal care at the time of completing the declaration).
pay ends on or before the calculation date (the day the absence begins) and goes back 52 weeks. If the employee receives no pay in one of those weeks, that week is disregarded, and the reference period extends back an extra week, up to a maximum of 104 weeks. Unlike other calculations, a week isn’t excluded if pay is received but no work is done (such as a week of holiday pay). Ensuring the correct treatment of reimbursement of training costs to a previous employer Q: A new employee started with our business and as part of their offer, we’ve agreed to reimburse them for the training costs they’re required to pay to their previous employer. Should this be grossed up and paid as a ‘golden hello’, or can it be paid free of tax and National Insurance contributions (NICs)? A: If you’re paying the employee cash, this is treated as additional earnings and subsequently, is subject to tax and Class 1 NICs. This is because you’re reimbursing the employee for their own personal bill.
Guidance from HM Revenue and Customs (HMRC) for employers on
statutory neonatal care pay and leave can be found here: https://ow.ly/CBJB50XN6x9.
How do you correctly calculate average holiday pay?
Average holiday pay calculations Q: Are holiday weeks included in the calculation of average holiday pay for irregular hours workers? A: The reference period for calculating Meet the team
Chevonne Wild MCIPPdip Payroll Advisory Team Leader
Marie Bennett MCIPPdip Payroll Advisory Officer
Monica Blajut MCIPPdip Payroll Advisory Officer
Leanne Sinclair MCIPPdip Payroll Advisory Officer
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