FAQ: Statutory Maternity Pay (SMP)

Contents

If you are not familiar with some of the terms used please see Glossary of terms used for an explanation.

Need more help?

If you have any other questions relating to SMP which have not been covered you can get more help by calling the Employer Helpline, or you can send an email and we will reply within two working days.

Maternity leave for babies due on or after 5 October 2008

Women whose babies are due on or after 5 October 2008 are entitled to the benefit of the same non-pay contractual terms and conditions during additional maternity leave as those to which they are entitled to during ordinary maternity leave. For more information go to the Business Link website (Opens new window) or in Northern Ireland contact the LRA or Tel 028 9034 1442.

What do I do if my business becomes insolvent?

If you become insolvent after the start of the 15th week before the expected week of childbirth and before the start of your employee’s pay period, HM Revenue & Customs (HMRC) will pay your employee’s SMP. If you become insolvent during the SMP pay period, HMRC will pay your employee’s SMP fro the week in which you became insolvent. You should advise your employee to contact the Statutory Payment Disputes Team on Tel 0191 2255221. It will also help if you or the administrator, liquidator or the other similar office can let us know which of your employees are affected so we can pay them as soon as possible.

My employee has been made redundant: do I still have to pay her SMP?

Yes. If a woman has qualified for SMP from you then you are still liable to continue to pay SMP to her where she leaves your employ for whatever reason including redundancy. However if after the baby is born, your employee or ex-employee starts work for another employer who did not employ her in the 15th week before her expected week of childbirth, payment may stop, see Employee works for another employer.

My employee is pregnant but did not provide medical evidence within the required time: what do I do?

You can refuse to pay SMP if your employee does not give you medical evidence of the date the baby is due by the end of the third week of what would be the Maternity Pay Period (MPP). This time limit can be extended to the end of the 13th week of her MPP if you accept the employee’s reasons for not providing medical evidence earlier.

Once you have medical evidence you must provide form SMP1 to your employee if SMP is not due from you.

My employee has not provided any medical evidence of her pregnancy: what do I do?

If your employee has not provided you with medical evidence then providing an SMP1 is difficult because you have no basis on which to do so. However if the woman was employed by you in the 15th week before her expected week of childbirth, Jobcentre Plus need confirmation that SMP is not due from you and will be unable to pay maternity allowance to the woman without such confirmation. It is the woman’s responsibility to provide you with the evidence to enable you to issue an SMP1 to her should SMP not be payable.

Does my employee qualify for SMP?

There are several qualifying conditions which must be met before you can pay SMP to your employee, including confirmation of the pregnancy which is usually in the form of a MATB1 signed by a doctor or midwife. Follow the flowchart - Operating the SMP scheme (PDF 48K) to decide if SMP should be paid. The SMP calculator will help you work out whether you should pay SMP to your employee and how much you should pay.

How much SMP will my employee get?

You pay the first six weeks of the SMP payment at 90 per cent of your employee’s average weekly earnings. The following weeks, up to a maximum of 33, are payable at the lower of 90 per cent of those average weekly earnings or £123.06 for 2009-10.

How do I calculate SMP?

The SMP calculator will help you to work out if you have to pay SMP to your employee and if so how much SMP you have to pay her. It will also help you to work out how much SMP funding you can get.

What do I do if my employee is not entitled to SMP?

If your employee does not meet all the qualifying conditions, see Flowchart – Operating the SMP (PDF 93K) you do not have to pay SMP. Instead you should return the MATB1 to your employee after taking a photocopy for your records. Then complete form SMP1 and give it to your employee as she may be able to claim Maternity Allowance.

My employee is pregnant and has gone off work sick because of a pregnancy related absence, do I pay SSP or SMP?

This depends on when the baby is due and the length of absence. If the employee is off work sick because of her pregnancy and the absence continues into, or starts within, the four week period starting on the Sunday of the fourth week before the week baby is due, there are special rules, see Pregnancy related absence.

What do I need to do if the baby is born early?

If the baby is born early you may be able to pay SMP as long as the employee meets the qualifying conditions. But if the baby is stillborn special rules apply. For more information see Stillbirth.

What happens if I give a payrise to an employee on maternity leave?

You must recalculate SMP average weekly earnings to take account of payrises awarded or which would have been awarded to a woman had she not been on maternity leave. For more information see Does your employee earn enough?

What if I don't have enough money to pay SMP to my employee?

You can ask your HMRC Accounts Office to pay you an advance of the amount you need to pay your employee's SMP. For more information see Recovering Statutory Payments

Does my employee have to tell me when she intends to return to work?

If she is on maternity leave with you and is taking her full statutory maternity leave from your employment, no notice of her return to work with you is required. If your employee does not want to take the full statutory maternity leave if at all possible she should tell you at least 28 days before her proposed start date. If she decides to return to work before or after the agreed date she must give you eight weeks notice of when she intends to return to work. For more information see Has your employee given you sufficient notice?.

Is SMP subject to tax and NICs (National Insurance contributions)?

Yes. SMP is regarded as earnings for PAYE (Pay As You Earn) and NICs. But it may be that the earnings will not be high enough to attract payment of NICs and may also produce a tax rebate.

What records should I keep?

You must keep medical evidence of the pregnancy (form MATB1 or other similar evidence) records of the payment dates and amount paid, the date the pay period began a record of any weeks in the 39 week period when SMP wasn’t paid and reasons why. Form P11 and relevant end of year forms should also be completed. For more information see Keeping records.