How much of the statutory maternity pay that it has paid out can an employer recover?
The majority of employers can reclaim from the Government 92% of all amounts of statutory maternity pay (SMP) that they have paid out. Reimbursement is achieved by deducting the gross amounts of SMP paid from the total amount of national insurance contributions due for the relevant tax month. "Small employers" may reclaim 100% of all SMP paid out plus another 3%, which is to compensate for the secondary national insurance contributions that are payable on SMP. A small employer is one whose total gross national insurance contributions, ie the combination of employees' and employers' national insurance, were £45,000 or less during the last complete tax year.
To reclaim the relevant amounts, the employer must be able to show that the rules of the SMP scheme have been complied with. Records must be kept that show the dates of all maternity absences notified and taken; the amounts of SMP paid out and the weeks for which they were paid; any weeks for which SMP was not paid and the reason for this; and medical certificates or other medical evidence related to the expected week of childbirth provided by employees for whom SMP was paid.