What is the lower SMP rate?
90%
Statutory Maternity Pay ( SMP ) is paid for up to 39 weeks. You get: 90% of your average weekly earnings (before tax) for the first 6 weeks. £151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.
What can be deducted from SMP?
Deductions from SMP SMP is treated as earnings, so your employer will make any deductions (such as income tax and NI contributions) that are due. Your employer can also make other deductions from your SMP , for example pension contributions or trade union subscriptions.
How much SMP can an employer claim back?
What you can reclaim. As an employer, you can usually reclaim 92% of employees’ Statutory Maternity ( SMP ), Paternity, Adoption, Parental Bereavement and Shared Parental Pay.
Do you pay SMP if an employee leaves?
Employee leaves job It does not matter why they left or that they’re not coming back – they’re entitled to SMP if they satisfy the qualifying conditions, you cannot ask them to repay it. There are special rules for when you start to pay. Work out the date of the Sunday of the 11th week before the week the baby is due.
What is the SMP rate for 2021?
Statutory Maternity, Paternity, Adoption, Shared Parental and Parental Bereavement Pay
| Type of payment or recovery | 2021 to 2022 rate |
|---|---|
| SMP – weekly rate for first 6 weeks | 90% of the employee’s average weekly earnings |
Who pays your statutory maternity pay?
employer
Your employer pays your SMP in the same way as your salary is paid. They deduct any tax and National Insurance contributions. Your employer can claim your SMP back from HM Revenue and Customs (HMRC). You can get SMP even if you do not plan to go back to work or your job ends after the 15th week before your baby is due.
Can you deduct an overpayment from SMP?
The Act goes on to state that an employer is allowed to deduct where there has been a genuine overpayment of wages. Wages are defined so as to include SMP payments. Therefore, if you are unable to reach an agreement with your employee then you would be entitled to make future deductions to recover the amount overpaid.
Is SMP paid by employer or government?
Your employer pays your SMP in the same way as your salary is paid. They deduct any tax and National Insurance contributions. Your employer can claim your SMP back from HM Revenue and Customs (HMRC). SMP is not classed as public funds.
Can my employer claim back maternity pay?
The majority of employers can reclaim from the Government 92% of all amounts of statutory maternity pay (SMP) that they have paid out. Reimbursement is achieved by deducting the gross amounts of SMP paid from the total amount of national insurance contributions due for the relevant tax month.
Can you deduct overpayment from SMP?
Do I have to pay back my SMP if I don’t return to work?
If you get contractual maternity pay you might only keep your full amount if you return to work. You won’t need to pay back statutory maternity pay or Maternity Allowance, even if you don’t return to work.