Customer update 24/02/2025

Known Issue: IRIS Payroll Business & Bureau

An issue with the processing of Statutory Paternity Pay (for Birth only, not Adoption) in the IRIS Payroll suite (IRIS Payroll Business (IPB), IRIS Bureau Payroll (IBP), and IRIS Payroll for Accountants).

For employees whose leave for SPP(Birth) start date falls between 1st January 2025 and 6th April 2025, the system is using the SPP rate payable in tax year 2023/2024 amount of £172.48, instead of the 2024/2025 tax year amount of £184.03 causing the employee to be paid less than their entitlement. Employees receiving Statutory Paternity Pay (Adoption), or other Statutory Pay are not affected. The issue has now been fixed in the mandatory legislation release for April 2025.

What you need to do

For employees that are due to take Statutory Paternity Pay (birth) leave between 1/1/2025 and 6/4/2025, and is entitled to the full rate of SPP:

  • Create the Statutory Paternity Pay (birth) record as normal. The system automatically calculates the amount payable as £172.48 (for 1 week’s SPP) or £344.96 (for 2 weeks’ SPP). Disregard the £172.48 value and undertake the workaround below:

  • In ‘Enter Variations’ field, the amount of SPP due to be paid in the period will be displayed in the top right corner of the screen. Adjust this value to £184.03 for 1 week’s SPP or £368.06 for 2 weeks.

Note: If the employee is only taking 1 week’s leave in the current period and will be taking a further week before the 6/4/2025, you will need to remember to amend the SPP amount again in the period the payment is due.

For employees that have already been paid Statutory Paternity Pay (birth) and their leave was on or after 1/1/2025:

o Correct the value in the next available pay period. Check the amount that has already been paid to the employee, and if they received the incorrect amount of £172.48 then £11.55 will be due for each week of leave taken.

  • In ‘Enter Variations’ field, for the current pay period, enter the difference due in the SPP field £11.55 if they have already been paid for 1 week SPP, or £23.10 if they have already been paid for 2 weeks SPP.

The above procedures will correct underpayment of SPP (birth), the Recovery and Compensation, amounts that the employer is entitled to recover from payments to HMRC.

HCM Product.