Questions from our Forum – 19/09/11

Thursday, September 15th, 2011

Each week we receive a number of payroll questions on our forum, and here are this week’s batch. Can you help with any answers?

Forum Posts

An employee has been overpaid and recovery is being made during weeks that count towards her average weekly earnings (AWE) for SMP purposes? Should we calculate her AWE from earnings before the deduction or after the deduction?

I’m looking at a case where there has been an error in payroll (by the employer) which resulted in an overpayment of normal monthly salary. This is being rectified by an agreed monthly deduction to clear the amount overpaid.

However, the pay with the deduction falls into the calculation period for AWE so will affect her maternity pay and this feels a little unfair to the employee, seeing as it was the employers error in the first place.

Can we use what would have been her normal salary without the deduction for the AWE calculation? Our payroll officer is sticking to the rules and I’m trying to mitigate an unfortunate situation for the employee.

More….

Further questions from our forum:

  1. (USA) How much state and county income tax should be withheld for employees in Anne Arundel County, Annapolis, Maryland?
  2.  Where employees have been made redundant and leave having been overpaid, can overpaid taxable pay be recovered from non-taxable termination payments?
  3. A woman currently on maternity leave has resigned but is still due further SMP.  We believe she may have started working for another employer.  How should we handle the situation?
  4. We are thinking of allowing employees to update their own bank account details using our self-service facility.  What issues should be considered?  Have other employers found that this increases BACS submission errors?
  5. Does the requirement for employers to pay full pension contributions during maternity leave apply also to paternity leave?
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