Can my employer reclaim NI and pension contributions on SMP?

(7 Posts)
theremarkablerocket Mon 08-Jun-20 13:43:13

I've Googled this but can't find a clear answer so wondering if anyone here can help...

I'm currently furloughed and also 18 weeks pregnant. My employer has told me he will make me redundant when furlough ends in its current form at the end of July. My qualifying week for SMP is the last week of July so I should be eligible.

I work for a small company and the director isn't a great employer (eg. never pays salaries on time, has to be chased up every month). I've so far put off telling him I'm pregnant and I have no doubt that he will be unhappy about me qualifying for SMP (he was very resistant to furloughing me as he said it was a lot of extra work for him).

I think it would make the conversation go more smoothly if I can confidently tell him how much of my smp he will get back from HMRC but I can't find out anywhere whether the refunded amount includes employers' NI or pension contributions.

He only employs 5 people (2 of them 2 days/week, 2 of them 4 days/week) so I assume he'll qualify for small employers relief. Can anyone give me a clear idea of whether he'll have to pay anything and if so how much (as a %)?

Thank you!

OP’s posts: |
ThatLockdownLyfe Mon 08-Jun-20 14:37:13

If you're not employed you will claim MA instead.

Isleepinahedgefund Mon 08-Jun-20 15:21:07

Actually if you're made redundant in or after the qualifying week (15th week before due date) you still get SMP from your employer. OP has indicated she knows she is entitled to it.

This tells you what the employer can claim, it depends on size of the business:

https://www.gov.uk/recover-statutory-payments

YinuCeatleAyru Mon 08-Jun-20 15:24:00

You will qualify for SMP so long as you are employed in your qualifying week so make sure you don't let on about your pregnancy before then.

Your employer may actually get back more than what they have to pay you. They can claim back 103% of what they pay you if they qualify for Small Employers Relief.

The Furlough scheme is officially called the Coronavirus Job Retention Scheme and is intended to support employers in keeping jobs open during the shutdown in order to avoid redundancies. Whilst is seems that it is legal to pocket the money from the government and then make you redundant anyway, it's an extraordinarily shitty thing to do, so probably a good thing that you will be well rid of this awful employer soon.

theremarkablerocket Mon 08-Jun-20 20:46:59

Thanks @Isleepinahedgefund and @YinuCeatleAyru - what I'm trying to work out is whether that 103% only applies to the actual smp (ie. 90% of my salary or £148/week) or whether it's 103% of that amount AND his NI and pension contributions.

I know it seems trivial but he will be furious if he's going to be left out of pocket at all so I'd like to make sure I have as much information as possible before having the conversation (and yes, I am definitely well out of it after that!).

OP’s posts: |
YinuCeatleAyru Mon 08-Jun-20 23:21:36

I believe its 103% of everything he pays out so including everything - the idea being to ensure that small businesses are never out of pocket if an employee has gets pregnant

CharteredBeanCounter Mon 08-Jun-20 23:25:19

No, it is 103% of the SMP only. I do these claims on behalf of employers as part of my job.

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