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Statutory Maternity Pay in PaySuite

If your employee is expecting, you have a legal requirement to to pay her Statutory Maternity Pay (SMP) if she is eligible to take statutory maternity leave when she is having a baby.

How to find out if your employee is eligible for Statutory Maternity and Leave: Employer's Guide

Before entering a maternity record, ensure you have received all necessary documentation from the employee.

  1. Click Employees on the left pane.
  2. Select the applicable employee.
  3. Select Absences from the left menu.
  4. Select the Absence Type as Statutory Maternity Pay and enter the Start Date.  Click Create New Absence.
  5. Enter the relevant information in the fields provided.
    • QuickBooks Online will calculate the average weekly earnings automatically.  Only use the Override Average Weekly Earnings field when applicable to do so.  This should be used in instances such as new payrolls whereby not enough history has been built up in order for the software to calculate the average weekly earnings, and therefore the amount needs to be manually entered. 
  1. Click Save.
  2. Once the record has been saved, you will see it listed under Existing Absence Reports.
  3. Statutory Maternity Pay will be calculated for the employee on the next payrun.

What you can reclaim as an employer:

As an employer, you can usually reclaim 92% of employee's Statutory Maternity (SMP), Paternity, Adoption and Shared Parental Pay.

You can reclaim 103% if your business qualifies for Small Employer's Relief. You get this if you have paid £45,000 or less in Class 1 National Insurance (ignoring any reductions like Employment Allowance) in the last complete tax year before:

  • the ‘qualifying week’ - the 15th week (Sunday to Saturday) before the week of the due date
  • the ‘matching week’ - the week (Sunday to Saturday) your employee was told they’d been matched with a child by the adoption agency
  • the date on the official notification if your employee is adopting a child from another country

How to reclaim

You will need to include the amounts in the Employer Payment Summary to HMRC. If you have the absence created in PaySuite, the EPS will include the amount of SMP that can be recovered.

For entitlement, eligibility and other useful information about your employee's right to maternity leave, see Statutory Maternity Pay and Leave: employer’s guide. You might also want to see Statutory Maternity Pay: manually calculate your employee's payments.

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