Statutory Maternity PayFrom April 2007, the 1st 6 weeks of payment is 90% of the employees average weekly earnings. The SMP average weekly earnings calculation which is performed 2 months prior to the qualifying week, takes into account pay rises awarded, or which would have been awarded to a woman had she not have been pregnant. The remaining 33 weeks will be paid at £112.75. If the employee average pay is less than £112.75, then they will get the lesser rate for the remaining 33 weeks.
Statutory Paternity Pay
The weekly rate of SPP paid to an employee for payment weeks starting on or after April 2007 is - the lesser of the standard rate, which is £112.75 or, 90% of the employees average weekly earnings.
Statutory Adoption Pay
The weekly rate of SAP paid to an employee for payment weeks starting on or after April 2007 is - the lesser of the standard rate, which is £112.75 a week or, 90% of the employees average weekly earnings.
Women can start maternity leave anytime from the 11th week before the baby is due provided 28 notice has been given to the employer.
Employee's statutory rights must be incorporated in the employment contract including your company policy and procedures which employees should follow. Leave must be allowed for parental leave. Male and female employees must be offered statutory provisions for parental leave.
Small Employers’ Relief
For the 2007-2008 tax year provided that the
total gross Class 1 NICs is £45,000 or less, you will be classed
as a small employer. Small employers are entitled to
recover 100% of the total Maternity pay paid plus compensation
from Inland Revenue.
HMRC
can impose penalties of around £1000 for failing to keep adequate SMP records with up to £5,000 penalty or Prison for false SMP information.Our UK payroll service is tailored for all small businesses who are looking to outsource their salaries.
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