Maternity pay for nannies

[halcat]

Does anyone know what the deal is regarding maternity pay for nannies? My nanny is pregnant, her contract with us lasts until the end of August and she is due in October, so she won't be woth us when she has the baby but she will have worked for us for a full year. Do we pay her maternity pay, or does the government? and does the fact that she is part time make a difference?

We have been paying her NIs and everything so it's all above board, but I don't know whether we as her employers are the ones that should be paying it or whether she would get the givt statutory deal.

WOuld be grateful for any answers as otherwise I have to get in touch with the IR which is never a pleasure...

I think you have to pay it but you can claim it back from the Government. There is also something about keeping their job for them for a certain length of time. Though I could have dreamt that.

Do you use a payroll company like nannytax or nannypaye? They have advice lines and could help.
There is some information on the nannytax website but I don't know if it will be comprehensive enough to answer your questions.
I do know that if you have to pay her maternity pay then you can reclaim the pay plus an amount to cover the 'admin'. so you shouldn't be out of pocket.

Do you have a Fixed Term Contract with your employee? Sounds like you might have that, as you know when her leaving date is, and also I suspect your nanny knows her leaving date (is that right?).

You need to seek professional advice on this, so your first point of call is ACAS 08457 474747.

The main issue is the Qualifying Week (QW). I think she is in your employ as of 15th Week before the week baby is due, thus qualifies for SMP. You need to look carefully at the dates.
I'm not a lawyer though, so you need to check this out - contact ACAS for free advice.
You can find some more details at: DWP: SMP where it states:
"If your contract ends - If you satisfy both the continuous employment rule and the earnings rule, your employer must pay you SMP even if your contract ends at some time after the start of the 15th week before the week your baby is due."

HMRC have a SMP calculator which may help you get an idea of the costs to you as the employer: HMRC SMP Calculator

Guidance to recovering SMP is available: Recovering SMP

Also refer to Handbook E15. As your employee is not leaving until after April 2007, best to look more in depth at this after 1st April 2007, so that you are looking at the E15 for that tax year. HMRC: Employee Pregnant - E15

Work out the Qualifying Week - is your employee in your employ during the Qualifying Week? Then seek advice from ACAS and HMRC.

I believe she qualifies, so you will have to pay her 90% of her usual earnings for 6 weeks, then £105 (or something) for the next 20 weeks. I think the government will pay you back for all of it.

As you already know the end date is in August, you do not need to give her back a job. The contract ends in August. End of story.

thanks so much for all that help, brilliant, it sounds like we'll get most if not all of it back from the gvt which is good news.

cheers xx