Statutory Maternity Pay (smp)
Stillbirths Even if the baby survives for only an instant it is deemed a live birth. If the baby is stillborn before the 24th week of pregnancy SMP is not payable. In such a case it should be determined whether SSP is due as an alternative. If the baby is stillborn after the 24th week of pregnancy, the employee should be treated as if a live birth had taken place and SMP is to be paid. Disqualifying Period from SSP The 39-week period which spans the week during which the baby is expected to be born is known as the disqualifying period. It starts from the beginning of the week the employee is entitled to either Statutory Maternity Pay from the employer, or Maternity Allowance from the Department for Work and Pensions. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS During this period an employee is not entitled to Statutory Sick Pay. Should they return to work and then fall sick within this period i.e. up to 39 weeks, they revert back to SMP. For those employees entitled to neither SMP nor Maternity Allowance the disqualification period is 18 weeks spanning the week baby is due. Recovery of SMP paid A percentage of SMP paid may be recovered from the monthly remittance of tax and NICs. For current and previous year’s recovery rates see table above. Advanced funding Where employers have insufficient tax, NICs, student loan and Construction Industry Scheme deductions to fund the payment of SMP, they can apply to HMRC for advance funding using the e-mail facility available from the HMRC website at https://www.gov.uk/recover-statutory- payments/if-you-cant-afford-to-make-payments.
Penalties For refusal or repeated failure to: •
pay SMP to an employee who has entitlement produce or keep required SMP records.
No printing, copying or reproduction permitted.
•
A fine not exceeding £3000 will be levied in respect of each offence. For failure to produce records, documents or to provide information the maximum penalty is £300. For fraud or negligence in respect of incorrect statements, records, documents and payments of SMP a further fine of up to £40 per day may be applied for continuance of the failure. Records The employer must: • keep any medical evidence provided by employees to whom SMP is paid - usually form MAT B1 • keep a copy of any medical evidence where the original has been returned to the employee • keep a record of the dates of maternity absence notified by employees • keep a record of any weeks in the Maternity Pay Period for which SMP was not paid, together with reasons
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