06 June 2017
Whether you’re a start-up that’s growing its core team, or an established business with a large workforce, there will come a time when one of your employees hears the distant pitter-patter of tiny feet and goes off on maternity leave.
And that means dealing with Statutory Maternity Pay and all the related changes to this person’s pay in your payroll system.
Getting your head around maternity pay, and the various rules about when and how it’s paid, can be a complicated business. So we’ve pulled together this short guide that gives you the complete lowdown on how Statutory Maternity Pay works.
As long as they’re an employee of the business, all women on your team are eligible to take maternity leave. But to also get paid Statutory Maternity Pay (SMP) while they’re on leave they need to meet a few conditions.
If they meet those criteria, then it’s your job to pay them their SMP, once they’re started maternity leave and have become a new mum.
There are also a few rules around when they can take their maternity leave:
So, your employee has proved they’re eligible for SMP and has started their maternity leave – now it’s time to start paying them.
SMP is payable for up to 39 weeks, usually as follows;
You’re probably already mentally calculating the cost to the business of paying this SMP. But, don’t worry, you can claim back the majority of your SMP costs.
You’re able to claim back 92% of the SMP you pay out as an employer. You do this through your payroll by filing an Employer Payment Summary (EPS) to HMRC. And if you qualify for Small Employers Relief (SER) then you can claim back 103% of any SMP paid (now that’s good news for baby and business!)
Our team of expert accountants are here to help you embrace your numbers, get control of your financial destiny and achieve your key goals. From our offices located in between Bristol and Bath we work with aspiring startups, ambitious scaleups and established firms across the UK.
Still unsure about maternity pay? Don’t worry, we can help you deal with all the documentation, admin and changes to your payroll.Call us for a chat