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Intuit

Statutory Paternity Pay (SPP) in QuickBooks Online Standard Payroll

Your employee might be eligible for paternity leave if their partner or spouse is having a baby. If the employee meets the eligibility criteria, there is a legal requirement to pay the employee.

Employees can choose to take either 1 week or 2 consecutive weeks. For SPP, leave can’t start before birth. Employees are eligible for SPP either on the day of birth or the day or week you and the employee agree upon after the day of birth. The leave must be completed within 56 days of the birth (or due date if the baby is early).

Statutory Paternity Pay for eligible employees is either £151.20 a week or 90% of their average weekly earnings (whichever is lower). (This is the amount for 2020/2021. Note that this amount changes each tax year.) We calculate the employee’s eligible pay and also deduct the necessary taxes and NICs, if applicable.

Note that for employees who just started or if you switched from another payroll, we use the starter declaration to calculate how much leave the employee is due, the amount they’re entitled to, and the taxes and NICs that need to be deducted.

For more information about eligibility, leave, and pay, see Statutory Paternity Pay and Leave: employer’s guide. You might also want to check out Statutory Paternity Pay: manually calculate your employee’s payments.

To enter Statutory Paternity Pay (SPP)

  1. Go to the  Employees or Payroll menu.
  2. Select the applicable employee.
  3. Select Actions and Employee's Leave.
  4. Select Statutory Paternity Pay (SPP).
  5. Select the First day of leave.
  6. Select the Baby’s due date.
    When you need to update the Last day of leave, the Baby’s birth date, or any of the other fields, you’ll find the record under Leave periods on the employee’s profile. Note that for employees who just started or if you switched from another payroll, we use the starter declaration to calculate how much leave the employee is due, the amount they’re entitled to, and the taxes and NICs that need to be taken out.
  7. For Average Weekly Earnings, QuickBooks Online calculates the average weekly earnings automatically. Use the Average Weekly Earnings field only for certain instances, such as if you’re switching from another payroll software as QuickBooks does not have the employee's payroll history to accurately calculate the Average Weekly Earnings (AWE). In such instances, enter the correct amount. If you haven’t run payroll with us for at least 23 weeks before the baby’s due date, then enter the employee’s average.  To calculate the AWE, you need to find the relevant period, and determine the qualifying week, which is 12 weeks from the baby's due date. Then take the previous 8 weeks pay to determine the AWE.
    If the SPP is for an adoption, use the matching date instead of expected due date.
  8. Save your changes.

See also

Employees and payroll

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