You can configure allowances to pay statutory parental or sick pay, which are required pay types in the United Kingdom. You can then select the allowance based on its type when you configure the associated rule in the payroll policy, so the application knows which allowance to use to pay out the amount.
For more information, see the following topics:
In Payroll Set-up > Earnings and Deductions, when you add a new allowance, the United Kingdom subtab of the Tax and Compliance tab includes the Statutory earning drop-down list, where you can select one of the following options for statutory parental pay:
- Shared Parental Pay
- Statutory Adoption Pay
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Sick Pay
- Statutory Neonatal Care Pay
Because the application generates statutory pay when it runs the associated rule in the employee's payroll policy, you do not need to assign this allowance to the employee's payroll elections (in the General tab for the allowance, you do not need to select the Generated checkbox).
There is no need to set up limits or payees for these types of allowances. Details such as deduction amounts and limits for statutory allowances are set by the payroll policy rules.
In the Tax and Compliance tab, you would typically select Normal from the Allowance Type drop-down list.