§ Lord Barnett
asked Her Majesty's Government:
What percentage of statutory maternity pay is reimbursed to employers; and over what period. [HL1566]
§ The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham)
Employers pay statutory maternity pay for up to 26 weeks to qualifying employees.
Small employers whose gross national insurance contribution payments in a tax year are £45,000 or less recover 100 per cent. of the statutory maternity pay they pay out plus an additional amount, currently 4.5 per cent, in compensation for the employer's share of national insurance contributions due on SMP payments. Larger employers recover 92 per cent. of the SMP they pay out.
Employers reimburse themselves for SMP paid out from the money they are due to pay over to the Inland Revenue in tax, national insurance, student loan deductions and construction industry deductions. Employers can ask the Inland Revenue to pay out in advance if the amount of money the employer needs to pay in SMP exceeds the amount due to be paid over to the Inland Revenue for the same tax month or quarter.