SelectPay uses the Average NICable pay calculation to establish if an employee earns enough to meet the statutory payment requirements for sickness and parental pay. Below is the calculation used by SelectPay, and how it can be manually updated if required.
Average NICable calculation
For the employee to qualify for statutory payments, their average pay needs to be equal to or higher than the lower earnings limit for the tax year.
Sickness
Weekly
The sum of the previous 8 weeks divided by 8.
Monthly
The sum of the previous 2 months multiplied by 6 and divided by 52.
Parental Pay
The qualifying period for parental pay is the 8th week before the expected date of birth.
Weekly
The sum of the previous 8 weeks, before the qualifying period, divided by 8.
Monthly
The sum of the previous 2 months, before the qualifying period, multiplied by 6 and divided by 52.
Update the average NICable
You can manually enter an employee's average NICable figure if you believe it to be incorrect. To do this, follow the steps below.
📌Note: Changing the Average NICable figure will impact SMP and SSP calculations for the duration of that record.
Click Payroll, and then click Employees.
Find and select the required employee.
Click Open Employee, and then click the SSP Entitlement tab.
Enter the required average NICable figure.
Click Save and Close.