SMP Statutory Maternity Pay
All nannies are entitled to take up to 1 year off for maternity leave whether paid or unpaid.
How much SMP does employee get?
Of the 1-year entitlement nanny only gets paid for the first 39 weeks and should she take further 13 weeks off these are unpaid.
1st 6 weeks are paid at 90% of employee’s gross salary.
Remaining 33 weeks are paid at £148.68 or the 90% figure whichever is the lower amount.
Qualification for SMP
Nanny needs to have been employed by you 41 weeks before her due date.
Nanny needs to be earning above the lower earnings limit £118.00 gross per week.
Nanny needs to still be in your employ 15 weeks before her due date.
Nanny will be issued form MATB1 from her Doctor or Midwife this form will have the due date and from this due date you can then determine whether she qualifies for SMP or not, if not you then need to issue nanny with form SMP1, so she can then claim maternity allowance directly from the state.
Cost of SMP
Small employers can usually claim back 103% of any SMP, this is 100% of the SMP itself and an additional 3% compensation to help towards cost of employers NI.