Chapter 27 - Statutory Leave and Payments Flashcards
Stat Mat Leave and Pay
Stat mat leave = up to 52 weeks. Employees must take at least 2 weeks after the birth.
Stat mat pay = up to 39 weeks. First 6 weeks are 90% of average weekly earnings, the rest are the lower of the 90% or £145.18 a week
Length of Employment for SMP
To qualify, employee must have been continuously employed for at least 26 weeks into the 15th week before the baby is due aka the qualifying week
Level of Earnings for SMP
Must have earned enough to qualify: if average earnings for the 9 weeks ending the last pay day on or before the Saturday of the qualifying week are below the LEL for NIC (£116) they don’t qualify.
Note
If earnings are monthly, the earnings in the 8 week period are converted to weekly by dividing by 2, multiplying by 12 and dividing by 52
Notification for SMP
Must give employer 28 days notice of the date they want SMP to start. Must produce evidence of due date through a maternity certificate form MAT B1
Statutory Adoption Leave and Pay
Leave of up to 52 weeks. If conditions are met, pay up to 39 weeks. Only one person in a couple can get them.
The amount of pay is the same as are the conditions, just swap birth for matched with a child.
Must provide proof of adoption
Statutory Paternity Leave and Pay
Pat leave is given if a partner has baby or adopts. Employee must have worked for 26 weeks by the qualifying/matching week to be eligible.
Can take one or two consecutive weeks leave within 8 weeks of the birth
To qualify for pat pay, same conditions apply as for mat pay. Amount is the same, lower of 90% average weekly earnings or £145,18
Shared Paternity Leave - Conditions
Allows balance of stat mat leave and pay to be shared by partners. Leave can be taken in up to 3 separate blocks for each partner.
Pay is £145,18 or 90% average weekly earnings
Shared Paternity Leave and Pay - Conditions
1) employee must share responsibility for child with partner
2) employee or partner must be eligible for stat pay and leave
3) employee must be employed for 26 weeks into the qualifying week and remained employed until leave
4) during 66 weeks before baby is due, employee’s partner must have been working for at least 26 weeks and earned an average of £30 per week in 13 of them
Employer must be given notice in writing
Recovery of Statutory Payments
An employer is able to recover 92% of the gross amount paid in a month from HMRC.
If employer is small - employer and employee Class 1 NIC is less than £45,000 per annum - the full amount can be recovered plus a 3% supplement.
An EPS must be submitted to show any recoveries of stat payments and any advance funding
Records and Reporting
Employer must keep records of the payment dates and amounts paid. Amounts to be reported on a FPS. Amounts paid are recorded separately on the employee’s P60 as well as in gross pay
