When managing statutory absences, it's important to note that absence records cannot be entered for dormant employees. This is because dormant employees are not considered actively employed, which affects their eligibility for statutory payments.
Verifying employee entitlement
To determine whether an employee qualifies for statutory absence payments, use the HMRC statutory absence calculator. Check the following:
Populate the correct notice period.
Verify if the employee was in active employment during the qualifying week.
For detailed guidance, refer to HMRC’s Maternity Benefits Technical Guidance.
Processing payment
If the employee is entitled, there are three available options to process the payment. By following these steps, you can ensure compliance and accuracy when handling statutory absence records.
Option 1
Temporary rejoin the employee in Portal or Back Office.
Input a manual timesheet for a lump sum against the maternity code in Portal.
This option has no absence record, and as a temporary rejoiner, the tax code will be 0T, resulting in extra tax charges. The employee will need to claim a tax return.
Option 2
Rejoin the employee (the day after the employee's leave date).
Enter the absence record. To do this, follow these steps:
Click Employee then in the Search field, search for the relevant employee.
Under Statutory and Absences, click Absences.
Click Add then fill the leave type and the details from steps 1 to 6 on the screen.
Click Save.
For more information on absence records, check the Maintain Statutory Payments (UK) user guide.
Input a manual timesheet for a lump sum against the maternity code in Portal.
Make employee dormant (same date as rejoin).
Negate the salary and offset amounts, leaving only the lump sum and its corresponding tax.
Option 3
Rejoin the employee (the day after the employee's leave date).
Enter the absence record. To do this, follow these steps:
Click Employee then in the Search field, search for the relevant employee.
Under Statutory and Absences, click Absences.
Click Add then fill the leave type and the details from steps 1 to 6 on the screen.
Click Save.
For more information on absence records, check the Maintain Statutory Payments (UK) user guide.
Process the employee's maternity payroll and pay them monthly as usual.
Make the employee dormant when the maternity ends.