Hi
Client had baby 5 months ago, carried on paying herself 2.5k gross salary per month....how to claim back SMP? Submit eps? Deduct off future paye payments?? New one for me, bit of advice please
Thanks
Replies (7)
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Is she entitled to SMP?
On a salary of £30,000 a year, she would obviously meet the earnings threshold, but has she actually been on maternity leave and not worked for the company apart from on up to 10 KIT days? Once she has worked on more than 10 days during the 9 months of leave, her SMP ceases.
I assume that on Sage you would need to enter the SMP as an addition to pay, with a corresponding deduction as a set off against the salary to keep the total at £2,500, in order for the software to be able to calculate the SMP recovery. I am not sure what you have to do in Sage with regard to the arrears, but in Moneysoft, you would just file an EPS for the current month because the EPS contains both the current month and YTD figures for the SMP recovery.
If the PAYE due for the month is negative, you pay nothing and carry forward the balance to be recovered to the next month and so on to March.
End of SMP
You could say that 5 weeks of 2 days a week were KIT days and continue to pay SMP, but SMP would definitely cease after the 5 weeks.