SMP, SPP
& SAP for 2009/10 from Arch Payroll
Maternity
Pay
Women expecting a baby on or after 5 April 2009 who satisfy the qualifying
conditions are entitled to a maximum of 39 weeks SMP.
These
include having average weekly earnings of
£90.00 if their baby is due between 20 July 2008 and 18 July 2009.
£95.00 if their baby is due between 19 July 2009 and 17 July 2010.
The weekly
rate is as follows:
first 6 weeks 90% of average weekly earnings
remaining 33 weeks £123.06 or 90% of average weekly earning, whichever
is lower.
The employee
should provide you with form MATB1. This will shows the estimated week
of confinement, this is the date on which the qualifying conditions are
calculated.
The employee can obtain this form 20 weeks before the week in which the
baby is due and it should be given to the employer no later that 3 weeks
after the date your SMP was due to start.
As the legislation stands at present if an employee qualifies for SMP
then they automatically qualify for the extended leave. The employee is
under no obligation to inform the employer if they intend to take the
extended leave. The employer is to assume that the full length of maternity
leave is bring taken, i.e. 39 weeks paid leave and 13 weeks unpaid leave
and should inform the employee of their intended return date to work,
i.e. 52 weeks after first day of leave.
The only criteria that the employee must meet is to inform the employer
if they intend to return to work early and they are then required to give
8 weeks notice before their return to work.
An employee
can commence SMP from the 11th week before the birth up to the date following
the birth and is required to give 28 days notice for commencing maternity
leave. The employee can change her mind regarding the start date but must
give the relevant notice. Notice does not have to be in writing unless
the employer specifically requests it.
The employee
continues to accrue holiday entitlement during the maternity leave, including
the unpaid extended leave.
If an employee
returns to work whilst still on paid SMP they forego the right to SMP
and are just paid their normal wage. The employee can now work up to 10
days in the Maternity Pay Period without losing their entitlement to SMP
for that week, these are classed as "Keeping in Touch" days.
Any pay for these days are to be offset against the SMP.
Paternity
Pay (SPP)
Your employee
is entitled to paternity leave if both of the following apply:
they've worked for you continuously for at least 26 weeks up to and into
the 15th week before the date the baby's due, or the date an adopted child
is expected to be placed;
they continue to work for you until the date the baby is born, or the
date the adopted child is placed.
Your employee is entitled to take one or two weeks' paternity leave within
56 days of the date of the baby's birth or the date an adopted child is
placed with the adopter. They can't take odd days off and if they take
two weeks they must take them together.
If your
employee is entitled to paternity leave they may also be entitled to SPP
for the period of their leave. They'll be entitled to SPP if they have
average earnings at least equal to the NIcs Lower Earnings Limit (LEL)
- £95 a week or £412 a month for 2009-10.
Your employee should tell you that they'll be taking paternity leave by
the 15th week before the date the baby's due, or within seven days of
the date the adopter was told they'd been matched with a child. And they
must give you 28 days' notice of when they want their SPP to start.
If your employee is entitled to SPP, you must pay them the lower of:
£123.06 - from 6 April 2009
90 per cent of their average weekly earnings
You'll be able to recover at least 92 per cent of the SPP you have to
pay. If your total National Insurance payments are £45,000 or less
a year, you'll be able to recover 104.5 per cent of the SPP you have to
pay. This is to compensate you for the employer's NICs you have to pay
on the SPP.
You can recover SPP by deducting it from your monthly PAYE (Pay As You
Earn) payments. Or you can ask HM Revenue & Customs (HMRC) for funding
in advance.
If your employee's earnings are below the LEL, or they're not entitled
to SPP for some other reason, they may be able to get Income Support.
Statutory
Adoption Pay (SAP)
Employees who are adopting a child and are notified that they have been
matched with a child or received official notification that they are eligible
to adopt a child from abroad on or after 1 April 2007 who satisfy the
qualifying conditions are entitled to a maximum of 39 weeks SAP.
These include having average weekly earnings as follows:
£90.00 if they are notified that they have been matched with a child
or received official notification that they are eligible to adopt a child
from abroad on or before 04 April 2009
£95.00 if they are notified that they have been matched with a child
or received official notification that they are eligible to adopt a child
from abroad on or after 05 April 2009
The weekly
rate is the lesser of £123.06 of 90% of employee's average weekly
earnings.
Further
more detailed information is available from the Inland Revenue website
or by calling the helpline on 08457 143143 or please contact
us at your convenience
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