Statutory Neonatal Care Leave and Pay (SNCP) is available for parents whose child requires neonatal care during the first 28 days following birth. Eligible parents can receive up to 12 weeks of statutory pay and leave.
SNCP follows the same administration process as other statutory payments, such as Statutory Parental Bereavement Pay and Leave. You do not need any additional permissions beyond standard payroll administration access to process SNCP.
⚠️ Important: PeopleXD does not generate Statutory Neonatal Payments automatically. You must process them manually.
How SNCP works
SNCP payments use timesheet records. Once you configure the SNCP parameters, PeopleXD calculates any recovery automatically as part of the HMRC Employer Payment Summary (EPS) file.
Configure your SNCP pay code
Before processing any payments, you need to set up your SNCP pay code and recovery percentage. To do this, follow the steps below.
Click Settings then, under UK Tax Rates, click General.
From the SNCP Pay Code dropdown, select the pay code you want to use for SNCP payments.
In the SNCP Recovery Percentage field, enter the recovery percentage.
Click Save.
If you need assistance creating pay codes, refer to the Pay Code Wizard guide or the Pay Code guide.
Process SNCP payments
To make an SNCP payment to an employee, follow these steps.
Create a manual timesheet for the employee using your configured SNCP pay code.
To complete the payment, follow the standard timesheet process.
Recovery process
PeopleXD manages SNCP recovery automatically through the Employer Payment Summary (EPS) process, provided your configuration is correct.
Before finalising your payroll, confirm the following.
You have set the SNCP recovery percentage to the appropriate value in your settings.
You have used the correct SNCP pay code when processing manual timesheets.