You can configure allowances for statutory parental or sick pay, as required in the United Kingdom. When defining the corresponding rule in the employee’s payroll policy, select the appropriate allowance so that Dayforce can determine which allowance to use for the payment.
You don’t need to assign this allowance to the employee’s payroll elections because Dayforce generates the statutory pay when it runs the associated rule in the employee’s payroll policy. In the General tab of the allowance record, you don’t 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.
For more information, see the following topics:
To configure a new statutory allowance in Payroll Set-up > Earnings and Deductions, you would generally add a new allowance based on the appropriate system tax and compliance rule created for that statutory pay.
| System Rule | Corresponding Statutory Allowance |
|---|---|
| SAP | Statutory Adoption Pay |
| ShPP | Shared Parental Pay |
| SMP | Statutory Maternal Pay |
| SNCP | Statutory Neonatal Care Pay |
| SPBP | Statutory Parental Bereavement Pay |
| SPBPNIRE | Statutory Parental Bereavement Pay Northern Ireland |
| SPP | Statutory Paternity Pay |
| SSP | Statutory Sick Pay |
You could also create your own custom tax and compliance rule. In the Tax and Compliance tab, in the United Kingdom subtab, select one of the following options for statutory allowance in the Statutory earning drop-down list:
- Shared Parental Pay
- Statutory Adoption Pay
- Statutory Maternity Pay
- Statutory Neonatal Care Pay
- Statutory Parental Bereavement Pay
- Statutory Parental Bereavement Pay Northern Ireland
- Statutory Paternity Pay
- Statutory Redundancy Pay
- Statutory Sick Pay
In the Tax and Compliance tab, you would typically select Normal from the Allowance Type drop-down list.