26 June 2017
Maternity pay can be a complex payroll issue to get your head around. Most of us know about Statutory Maternity Pay (SMP), but are you also aware that there’s a Maternity Allowance for mothers who can’t claim SMP?
As we outlined in our last blog, there are some very clear rules around who in your team is eligible for maternity leave and Statutory Maternity Pay – and who’s not.
So if one of your team doesn’t qualify for Statutory Maternity Pay, what can they do? The answer is to claim the lesser-known Maternity Allowance, and to get paid this directly from the state, rather than through your own payroll system.
Maternity Allowance (MA) is an alternative that your employee can claim if they don’t meet the conditions for Statutory Maternity Pay (SMP). It’s not paid by you, as the employer. Instead, the government pay your employee directly every two or four weeks.
The amount your employee will receive varies depending on their eligibility. They’ll get either:
So, what are the conditions that apply for claiming MA? Your team member will be eligible for MA for up to 14 week or 39 weeks, depending on their situation:
1. Your employee can claim MA for up to 39 weeks if one of the following applies:
2. In the 66 weeks before their baby’s due, they must also have been:
3. If none of the above apply, they might still get be able to claim MA.
They’ll get MA for 14 weeks if for at least 26 weeks in the 66 weeks before their baby is due:
To claim MA, employees need to complete an MA1 claim form.
If you’ve got someone on your team who’s nearing the start of their maternity leave, come and talk to us about whether SMP or MA is the right option – and whether your payroll settings need amending.
At FD Works ours team of accountants and business advisors can help you organise your data, understand your business and provide actionable insight. Our services range from VAT returns to management accounts and financial modelling. Our knowledgeable team are based in Wick, between Bristol and Bath.
We’ll help get your maternity payments sorted, and your employee receiving the right money each month.Give us a call