my question is regarding recovery of Statutory Maternity Pay and the 3% compensation for National Insurance contributions.
The amount for SMP is £139.57 per week as calculated by the HMRC calculator, Payment have started from November 2015- the employer is Ltd in the construction industry. I haven't yet filled EPS, where I should put the CIS deductions suffered and the amount of SMP I want to recover. I am not sure what amount of SMP to claim back- the company is small- only 2 employees and qualify for 100% of the amount, but what about the compensations for NIC - I know that it should be 3%, but if no NIC are paid for the SMP I suppose that I should claim only 100% of the SMP.
If I claim these 3% compensation I don't know how to account for it- I should debit National Insurance compensation account and credit Employer National Insurance account, but if I have not debited Employer National Insurance first ( because there are no National Insurance contributions) what should I do?
If someone could help me with this problem, please respond to me.