Small Business Payroll - Information for Employers - Page 6 of 11

Statutory Maternity Pay (SMP)

Statutory Maternity Pay (SMP) from 6^th April 2012 is paid for a maximum of 39 weeks to employees who meet the qualifying conditions. Small Employer’s can recover 100 % of SMP plus 3% compensation.

If your nanny becomes pregnant please contact Way2paye. If she meets the qualifying conditions ask her to get a MATB1 from her doctor or midwife and forward it to Way2paye with her intended leave date. Way2paye will calculate your nannies maternity pay for you and claim it from HM Revenue & Customs for you.

Qualifying Conditions

Your nanny must still be working for you into the qualifying week which is the 15^TH week before the baby is due.
Your nanny must have been employed by you without a break for at least 26 weeks into the 15th week before the week your baby is due. Part weeks count as full weeks.
Earning before tax an average of £107.00 a week. This is called the Lower Earnings Limit for National Insurance Contributions (NI) and is the amount you have to earn to qualify for benefits. You have to earn more than this amount before you actually start paying NI.

Babies due on or after 1 April 2010

SMP is paid for:

First 6 weeks - 90% of your average weekly earnings with no upper limit
Remaining 33 weeks - Standard rate or a rate equal to 90% of your average weekly earnings. You will get whichever rate is lower.

The standard rate from April 2012 is £135.45
Further Guides on SMP are available to Members. Join Now

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