Accounting for Sickness and Maternity Pay

By | March 2, 2012

One recent study found that the average British worker takes 10 sick days every year. Also, women who are having babies are allowed to take up to a year’s maternity leave. Both of these things can have a serious impact on employers, creating an extra administrative burden and often creating complications in terms of payments and tax.

This is why it is so important for employers to have a good accounting and payroll system in place for the issues of statutory sick pay and statutory maternity pay. Payroll software is something that many companies use to help manage their systems and make sure they are able to take account of anyone going off sick or on maternity leave.

One of the benefits of payroll software is that it is very easy to make changes to the system and this can be done very quickly. This can be particularly useful in relation to statutory sick pay; while you might have a few months warning about someone going on maternity leave, you might have no warning at all if an employee suddenly goes off sick, so you will have to make arrangements for sick pay very quickly.

Also, the level of sick pay or maternity pay an employee gets can depend on a whole range of factors, such as how long they have worked for the company, what they do and how much they are usually paid for their work. This can make calculations as to how much they should get for sick or maternity pay quite complicated, but having payroll software makes this much easier as it automates many of the processes for you. Once you have input the relevant information into the system, it should take care of the numbers for you.

For example, when a woman first goes on maternity leave, she is entitled to statutory maternity pay. This usually starts off at 90% of her usual weekly salary. However, the figure drops the longer she is on maternity leave. It can be quite a big responsibility for an employer to ensure the woman in question is paid the right amount at the right time, so having payroll software to take care of it is very useful.

The software can also calculate the relevant taxes, and good software will automatically update when there is a change in tax law, which means you should always be paying accurate statutory sick pay and maternity pay.

If you are worried that SSP and SMP might be an issue for your company, you can also attend some good payroll courses, where you will learn more about how to use the software and how it deals with issues like SSP and SMP. This can be a useful way to get the most out of your payroll software and make sure you are taking account of any changes that occur within your business.

Overall, SSP and SMP are issues that most employers have to deal with at some point, so it makes sense to have a system in place to do this. Payroll software can help make the process much easier and ensure you keep on top of all your responsibilities in relation to employees who are currently off sick or on maternity leave.

About the Guest Post Author: Jake likes to rave about business software, and often asks himself where we would be without it? The pencil salesman may not be too happy these days, but the majority can’t live without their tech.