MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Holiday pay considerations for term-time workers Q: If a term-time worker leaves mid-term (mid-year), what will the calculations be and what adjustments would need to be made or noted as per their salary and holiday leave entitlement? A: When an employee leaves before the term end, you need to revisit your original calculation from the start of that term year and pay them for the actual term weeks worked up to the leaving date, plus any holiday pay they were due for the same period. Once you have calculated the amount due for the period the employee has worked, from the start of the term to the leaving date, you would compare it to what you have actually paid the employee for the same period. You’d include what your system might pay in the month of leaving, then pay the employee any extra money due in their final salary.
hasn’t taken any pay this year while the other is a director on £12,570, can you
The following link may be of use: https:// ow.ly/OiyI50RqZv7.
claim employment allowance? A: I can confirm that employment
Claiming back SSP Q: We have employees off sick on full pay, which costs the business money, but we have never processed SSP. Is there any other way to make a claim or for the business to get some of the SSP back? A: Unfortunately not. Employers are responsible for paying SSP to eligible employees but since 2014, they have been unable to claim any of it back from HM Revenue and Customs (HMRC), unlike with other statutory payments, such as statutory maternity pay (SMP). The only time in recent years was during the pandemic but this is no longer the case.
allowance isn’t claimable in the scenario described. You cannot claim the allowance if both of the following apply: l you’re a company with only one employee paid above the class 1 National Insurance secondary threshold l the employee is also a director of the company. For ease of reference, here’s the link to the relevant guidance: https://ow.ly/ hrj150RqYyB. Salary sacrifice deductions from statutory payments Q: Am I correct in thinking that it’s not possible to process salary sacrifice pension deductions from statutory payments, so statutory sick pay (SSP) would go through the payroll without having any pension deduction applied? A: While an employee is in receipt of a statutory only payment, there must be no salary sacrifice reduction. If the employee is on child-related leave and pay, the employer would usually bear this cost. However, for SSP there’s no legal requirement to top up an employee’s benefits. Therefore you would not necessarily need to make up the shortfall unless it’s stated somewhere in the contract of employment / salary sacrifice agreement. You may wish to seek employment law advice to review your salary sacrifice agreements and what happens in these situations.
Do you make salary sacrifice deductions when someone is receiving statutory pay?
Payrolling benefits and national minimum wage (NMW) Q: Does payrolling benefits conflict with the NMW? A: Firstly, it’s important to note that payrolling will be mandatory from April 2026. When payrolling benefits, all you’re doing is increasing the taxable pay so that tax can be collected on the benefit. This is a notional
What adjustments to holiday pay would need to be made for term-time workers leaving mid-year?
Conditions for claiming employment allowance
Q: If you have two people on your payroll and one is an employee but
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 8
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