Sage Business Cloud Payroll

Statutory Parental Bereavement Pay (SPBP)

From 6 April 2020, parents have a right to statutory leave if they suffer the loss of a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy.

Employed parents can claim 2 weeks paid leave for this period, subject to meeting eligibility criteria.

With Sage Business Cloud Payroll you can record SPBP during a pay run and automatically reclaim the money as part of your next Employer Payment Submission.

Who's entitled to SPBP?

  • Employed adults with parental responsibility who have suffered the loss of a child under the age of 18.
  • Parents who suffer a stillbirth after 24 weeks of pregnancy.

    In this instance, female employees will still be entitled to up to 52 weeks of maternity leave and/or pay, as will a mother who loses a child after it is born.
  • Parents and primary carers must have been employed for a continuous period of at least 26 weeks before the child’s death to be eligible for SPBP.

What are employee's entitled to?

  • Parents and primary carers who have been employed for a continuous period of at least 26 weeks before the child's death, and have received pay above the lower earning limit (£120 per week for 2020-21) for the previous eight weeks, are entitled to at least two weeks’ statutory paid leave (statutory rate of £151.20 per week [for 2020-21], or 90% of average weekly earnings, where this is lower).
  • Workers who have not been employed for a continuous period of at least 26 weeks are entitled to two weeks’ unpaid leave.
  • The two weeks’ leave can be taken either in one block of two weeks, or as two separate blocks of one week each. Leave must be taken within 56 weeks of the date of the child’s death. This is to allow for time to be taken off for difficult events such as birthdays or anniversaries.
  • Notice requirements for taking the leave will be flexible, so it can be taken at short notice.
  • If an employee loses more than one child, they will be entitled to take a separate period of leave for each child.

As the employer, what do I need to do?

Before recording SPBP, check your employee meets the following criteria:

Criteria Extra information

They have been continuously employed for at least 26 weeks at the relevant week.

The ‘relevant week’ is the week (ending with a Saturday) before the week in which the child dies.

They have average weekly earnings of at least the lower earning limit (in force at the relevant week) in the relevant period (this period is the same, irrespective of when the employee chooses to take the entitlement).

The ‘relevant period’ is the period of 8 weeks ending with the relevant week.
  • They have given you the correct notice.
  • Your employee must give notice in writing within 28 days of the first day of the SPBP period (or where not reasonably practicable, then as soon as reasonably practicable).
  • They have completed an employee declaration.
  • Your employee must provide evidence of their entitlement in writing, including a written declaration that they meet the qualifying conditions for Statutory Parental Bereavement Pay including details of

    • The name of the person claiming SPBP.
    • The date of the child’s death (or date of birth for a stillborn child).
    • The period or periods in relation to which statutory parental bereavement pay is to be paid.

    How do I record SPBP in Sage Business Cloud Payroll?

    Bereavement pay is recorded as an absence, during a pay run.

    If an employee is already on a different type of statutory leave, you can't also process bereavement pay.
    1. From the Absences stage of your pay run, select the required employee.
    2. From the Add Absence drop-down menu, select Bereavement.
    3. Complete the details for the bereavement leave as required.
    4. Complete the rest of the pay run as normal.

    SPBP is calculated at the statutory payment rate in force for the year. From 6 April 2020 this is £151.20 per week or 90% of average weekly earnings if less.

    This figure is reported in your next Full Payment Submission and the recoverable amounts are included as a year to date figure on your Employer Payment Summary.

    You must keep records for 3 years after the end of the tax year in which you make the SPBP payments.

    How do I recover SPBP?

    SPBP is recovered in the same way as other Parental Payments. When you record an absence in your pay run, the figures are automatically included in your EPS. When you submit the EPS to HMRC the payments you've made to your employees are offset against your current year's liabilities.

    If you qualify as a small employer, you can reclaim 100% of SPBP + 3% compensation. If you are a larger employer, you can reclaim 92%.

    Full details of how to recover payments are available from the Get financial help with statutory pay gov.uk page.

    What if I've just moved to Sage Business Cloud Payroll?

    If you've been using the software for less than 8 weeks

    When you enter the dates for the bereavement pay, you'll see the following message:

    At this point, you need to manually calculate the employee's average weekly earnings for the previous 8 weeks.

    For the calculation, you must include earnings recorded in Sage Business Cloud Payroll that fall within the previous 8 weeks, and add these to any other earnings within the previous 8 weeks that were recorded before you started using Sage Business Cloud Payroll.

    Once you have calculated the figure, confirm it's above the lower earnings limit for the tax year. If it is, enter the figure and click Save.

    If the average weekly earnings figure is below the lower earnings limit for the tax year, your employee does not qualify for SPBP. Select the Issue certificate option.

    If you've been using the software for less than 26 weeks

    Your employee must have been continuously employed for 26 weeks. You must check they meet this criteria before recording the SPBP.

    Override AWE

    If you are processing a statutory payment for a furloughed worker that has been receiving a reduced salary as part of the Coronavirus Job Retention Scheme, the Average Weekly Earnings (AWE) figure automatically calculated by Payroll will be calculated using the reduced rate for any affected weeks in the qualifying period.

    For example:

    Qualifying week 1 2 3 4 5* 6* 7* 8* Average pay used for the AWE figure
    Percentage of normal pay recieved 100% 100% 100% 100% 80% 80% 80% 80%

    90%

    * Furloughed week

    Employees are entitled to the following statutory payments based on 100% of their normal average earnings:

    • Maternity Pay
    • Paternity Pay
    • Shared Parental Pay
    • Parental Bereavement Pay
    • Adoption Pay

    To recalculate the AWE figure, you must make the furloughed weeks up to 100% and then manually calculate the amount again.

    If your employee agreed a salary reduction outside of the Coronavirus Job Retention Scheme you do not need to adjust the figure. In these cases, the adjusted figure is classed as their new full salary.

    To adjust the figure

    1. Create and save the statutory payment as normal.
    2. From the absence page, select the absence you want to edit.
    3. Select the Override AWE check box.
    4. Enter the correct AWE figure and Save.

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