Want to get your money back this Christmas? Listen up…
All employers can reclaim statutory payments (we’re talking Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay and Statutory Shared Parental Pay). How much you can claim depends on whether the business qualifies for Small Employers’ relief. You will be classed as a Small Employer if the business paid less than £45,000 in Class 1 National Insurance (discounting any deductions) in the previous tax year.
The Good News
If the business does qualify for Small Employers Relief, it will be able to reclaim 103% of statutory payments. As an adult (aka big kids) you’ll notice we get less Christmas presents than the kids, and the same is true when it comes to reclaiming the cost of Statutory Payments. Larger Employers who don’t qualify for Small Employers Relief will only be able to reclaim 92% of payments.
The Bad News
From April 2014 Employers can no longer reclaim SSP for sick leave and must cover this cost themselves.
Claiming your Money Back
In order to reclaim the payments, the employer must calculate how much they will get back and then submit an Employer Payment Summary (EPS) to the HMRC detailing this. Remember the EPS needs to have the year to date figures for the amount you are reclaiming.